Author: Felix Adam
When the dollar sneezes, global markets catch a cold—but what if this time, Europe benefits?
If you’ve been keeping an eye on exchange rates, you may have noticed something striking: the U.S. dollar has been sliding—hard. Against the euro, it recently hit its lowest point in over three years. In early April 2025, $1 got you about €0.88, down over 8% since January.
But what’s driving this drop? And more importantly, how can European buyers turn this into a smart sourcing strategy?
Let’s break it down.
In a move that rattled markets, President Trump announced sweeping new tariffs—dubbed “reciprocal tariffs.” Imports to the U.S. now face a 10% base tariff, with even steeper rates on key trade partners:
This has thrown a wrench into global trade, and investors are reacting—by pulling out of dollar-based assets.
Fun Fact: Tariffs are like a “tax on friendship” in global trade. When countries impose them, everyone gets a little nervous.
Despite rising U.S. bond yields (which usually attract investors), global investors are selling off dollar holdings. Why? Because high yields don’t matter if the policy environment feels unstable.
Think of it like this: even if the return is great, no one wants to board a rollercoaster if it looks like it’s missing bolts.
The dollar has long been the alpha of currencies—used globally as the reserve currency. But now? Some are rethinking that status.
With unpredictable policies coming from Washington, countries and investors are looking for alternatives. Dedollarization—a trend that seemed far-fetched a few years ago—is slowly gaining traction.
While the dollar stumbles, the euro is doing… surprisingly well. The European Central Bank is being cautious and steady. And markets like steady.
Even if the ECB considers a rate cut to tame the euro’s strength, investors still see it as more predictable. That matters—a lot.
Analogy Time: If the dollar is the flashy but erratic star player, the euro is the quiet captain that always shows up and follows the playbook.
Gold is booming. The Swiss franc is gaining. Even the Japanese yen is having a moment. That says a lot: investors are worried, and they’re looking beyond the dollar for stability.
Here’s where things get interesting. The dollar’s fall means your euro is going further—much further—when sourcing goods from outside the Eurozone.
And this isn’t just theory—it’s happening right now.
At Chemicals United B.V., we work closely with a network of international partners, many of whom are based in regions where the dollar still drives pricing. With the euro now flexing its muscles, we’re in a prime position to help you source globally at competitive rates—without the usual FX headache.
Whether you’re looking for raw materials, specialty chemicals, or industrial inputs, this moment is golden (or should we say… euro-en?).
Pro Tip: With lead times aligning and favorable exchange rates, this is one of the best times in years to secure import deals from the U.S., Asia, or other dollar-linked markets.
Currency swings come and go—but when they’re this steep, they create rare opportunities. The dollar’s slump, fueled by trade turbulence and policy unpredictability, has tipped the scales in favor of the euro.
For European businesses, this isn’t just news—it’s a signal.
A strong euro means stronger buying power.
And right now is the time to use it.
Let Chemicals United B.V. help you take advantage of the moment—smart sourcing starts with timing, and the timing couldn’t be better.
