Trump auto tariffs could drive euro to parity, Barclays says

Trump auto tariffs could drive euro to parity, Barclays says

LONDON (Reuters) – The euro could be driven back down to parity against the dollar if Donald Trump wins U.S. Presidential elections in November and imposes hefty 20% tariffs on Europe’s carmakers, Barclays’ global chairman of research predicted on Friday.

Barclays sees the euro dropping to $1.05 from around $1.08 now in its “base case” scenario of a 10% increase on broader tariffs on Europe, but “if we get 20% tariffs on autos I think it is probably going to get much closer to parity,” Barclays’ Ajay Rajadhyaksha told reporters on a conference call.

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