Export crisis in Europe?

Salcher: “The calculation only works with Trump”

Financial market expert Oswald Salcher warns: "The euphoria on the crypto exchanges is great and Bitcoin is moving towards 100,000 US dollars. The announcement that the USA could invest more in cryptocurrencies will only fuel the market further."

(Bild: krone.tv )

Donald Trump's "America first" policy is leaving deep scars in the international currency structure and in Europe's export strategies. With a strong dollar and planned new tariffs, Trump wants to protect the American economy from supposedly harmful cheap imports. But what does this mean for the euro and exports from Europe?

Oswald Salcher, Country Manager of Trade Republic, explains: "A strong dollar is actually not so good for the American economy. Exports normally benefit from a weaker currency, but Trump is pursuing tough protectionism." With his "America first" approach and new tariffs on imports, the USA is to become more self-sufficient, but this is targeting European exporting countries. Donald Trump has a clear goal: to protect his own economy and reduce cheap imports from abroad. 

According to Salcher, this is particularly critical for German car manufacturers: "If protective tariffs are imposed on the automotive industry, it will be really difficult for exporters like Mercedes and BMW." While Tesla is jubilant and gained 17 percent in one day, Mercedes saw its share price fall by 17 percent on the same day. A clear sign, says Salcher: "Export companies will have increasing problems under Trump."

Trump and Musk as a crypto dream team?
Not only the dollar, but also the crypto markets are experiencing turbulence. Bitcoin recently reached a new all-time high, which many attribute to Trump's pro-crypto statements. "Trump has described himself as a crypto president," explains Salcher. "The euphoria on the stock exchanges is huge and Bitcoin is moving towards 100,000 US dollars."

(Bild: krone.tv )

But Salcher warns: "Cryptocurrencies, especially Bitcoin, were developed to make themselves independent of national banks. This actually contradicts what the USA wants to achieve." Despite the euphoria, it remains to be seen whether the "crypto nation" can actually establish itself. The financial market expert sees this as "sabre-rattling" rather than a realistic strategy. Donald Trump and Elon Musk - two giants who promise great things for the USA.

However, financial market expert Salcher warns: "The two could create too high expectations among the population, which will ultimately not be fulfilled." The euphoria surrounding a "crypto nation" and Trump's self-proclaimed title as "crypto president" could quickly boomerang when Americans realize that Trump and Musk can't work magic either. Salcher puts it in a nutshell: "Disappointments could then intensify."

He also points to the unpredictable events of recent years, which can call any planning into question: "Who would have thought that there would be a crisis? Or that there would be a war in Ukraine?" In times of extraordinary events, the question arises as to whether Trump, Musk and co. can lead the country in a stable manner.

When asked what form of investment he would personally choose for his savings, Salcher is pragmatic: "I would go for a very broadly diversified ETF." According to Salcher, an ETF that invests globally in various sectors, countries and currencies offers stability, because: "The global economy will continue to grow in the future because people are always striving for perfection and improvement."

Watch the full interview in the video above!