The US dollar has surged following Donald Trump’s election victory, impacting global currencies.
- The dollar increased by 1.4% against the pound and 1.8% against the euro following the US election results.
- Trump’s victory was confirmed with the necessary 270 electoral votes, with Republicans also securing Senate control.
- Potential tariffs on UK exports raise concerns, prompting discussions on a US-UK free trade agreement.
- UK leaders remain optimistic about continuing strong trade relations with the US under Trump’s leadership.
The US dollar has seen significant gains after Donald Trump was declared the winner of the US presidential election. The currency rose by 1.4% against the pound, settling at £0.777, and by 1.8% against the euro, reaching €0.931. This increase follows the announcement of Trump’s victory on 7 November after securing the 270 electoral votes required for the presidency.
Republican success extended to winning a majority in the Senate, providing a platform for the proposed economic policies, including tax cuts and tariffs on imports. During his campaign, Trump suggested imposing a 10% tariff on all imported goods, with potential increases up to 60% for imports from China.
In the UK, Keir Starmer, during Prime Minister’s Questions, was cautioned about the potential “risk of increased tariffs on UK exports.” He was questioned about efforts towards establishing a free trade agreement with the US, indicating that economic talks were already in progress.
Chancellor Rachel Reeves expressed confidence in the resilience of the US-UK trading relationship, emphasising its importance. She stated, “I am confident those trade flows will continue under President Trump,” reflecting a positive outlook on future economic engagements.
The fashion industry remains vigilant as geopolitical shifts influence economic strategies.
