Goldman Sachs says euro could drop 10% under Trump tariffs and tax cuts

LONDON (Reuters) – Goldman Sachs has said the euro could fall as much as 10% – implying a drop below $1 from current levels – in a scenario in which Donald Trump imposes widespread tariffs and cuts domestic taxes if he wins the Nov. 5 U.S. presidential election.

A 10% global tariff and 20% levy on Chinese imports, combined with the stimulus of domestic tax cuts, could cause the dollar to rally sharply and the euro to drop 8% to 10%, Goldman Sachs analyst Michael Cahill said in a note on Tuesday.

The euro last traded at $1.083.