While Trump’s tariffs build walls, American dollars are sneaking out the back door, staging a massive transatlantic migration. Global investors yanked $10.62B from US funds while flooding European equity markets with $11.13B last week — almost surpassing 2024’s €11.91B ($13.54B) EU inflows as investors question America’s economic trajectory amid escalating trade tensions and tariff uncertainties.

• As the S&P 500 plunged 5.2%, Europe’s STOXX 600 gained 3.7% over the last five days — even Hong Kong’s Hang Seng increased by 3.2% amid the Asian capital rush.
• Normally seen as a “safe haven” during market turmoil, the US dollar surprisingly dropped to three-year lows — tumbling ~5% against the euro since Apr. 2 amid heightened recession fears.

Not everyone is happy: As the dollar sputters, European luxury companies face a double whammy — higher import costs with increasingly unfavorable exchange rates for US customers. As nervous investors flock to safe havens like gold, the precious metal’s steep run-up has compressed watchmaker and jewelry margins. While European equity funds enjoy a capital windfall, the continent’s luxury giants are discovering that $11B in new investment doesn’t buy much when your top customers’ currencies evaporate like designer perfume.