The US dollar has gained momentum following renewed tariff threats from former President Donald Trump, pushing the euro to near a two-year low. Trump’s announcement of potential tariffs on European goods has sparked concerns about a trade war, leading investors to flock to the safety of the dollar.

The euro fell to $1.05 against the dollar, its lowest level since early 2023, as markets reacted to the uncertainty. Analysts attribute the dollar’s strength to its status as a safe-haven currency during times of geopolitical and economic instability. “The tariff threats have created a risk-off environment,” said a currency strategist. “Investors are seeking refuge in the dollar, which is seen as a stable asset.”

The situation has also raised concerns about the impact on global trade and economic growth. If the tariffs are implemented, they could further strain US-EU relations and disrupt supply chains, potentially leading to higher costs for businesses and consumers.