Following the US election, the American dollar has appreciated against both the pound and the euro, impacting various sectors.
- The dollar surged by 1.4% against the pound, reaching £0.777, and by 1.8% against the euro, reaching €0.931, post-election.
- Donald Trump secured the presidency after achieving the necessary 270 electoral votes, with Republicans gaining Senate control.
- Potential tariff implementations under Trump could affect international trade, notably imports from China.
- UK political figures are responding to potential trade challenges resulting from the election outcomes.
The recent US election culminated in a significant appreciation of the American dollar against the pound and the euro, stirring impacts across multiple industries including fashion. The currency rose by 1.4% against the pound to £0.777 and by 1.8% against the euro, reaching €0.931, shortly after Donald Trump was announced the victor. This monetary movement reflects the broader market’s anticipation of changes under the forthcoming Trump administration.
Donald Trump was confirmed as the US President on Wednesday, having acquired the 270 electoral votes essential for victory. Concurrently, the Republican Party secured a majority in the Senate, setting the political stage for potential policy implementations such as tax reductions and import tariffs. Trump’s campaign promises included proposing tariffs of up to 60% on Chinese imports, highlighting a focus on rebalancing trade terms.
Amid these developments, UK politicians are engaging with anticipated trade policy shifts under Trump’s administration. During Prime Minister’s Questions, the prospect of increased tariffs on UK exports was raised, prompting discussions on the necessity of a trade agreement with the US. Keir Starmer acknowledged the importance of establishing economic dialogues with the newly elected President, while Chancellor Rachel Reeves expressed trust in the resilience of UK-US trade relations.
The fashion industry, renowned for its extensive international supply chain, is particularly poised to feel the effects of these currency fluctuations and trade policies. Businesses operating within this sector may need to strategise effectively to mitigate potential cost increases arising from higher import tariffs or altered trade agreements.
As the US readies for another term under Trump, the economic landscape is expected to shift. International relations, especially concerning trade, will likely be scrutinised and recalibrated to both countries’ strategic interests. Political and industry leaders are tasked with navigating these changes to maintain stable economic ties.
The strengthening dollar post-election signals anticipated economic shifts under Trump’s presidency, impacting international trade dynamics.
