Americans traveling to Europe next year may be able to find some bargains thanks to the euro-dollar exchange rate. The euro has weakened against the dollar in recent weeks and is expected to fall further in 2025 and possibly into 2026. This is a good thing for American tourists traveling to Europe. Their purchasing power could rise "quite significantly." The euro has been largely stronger than the U.S. dollar for decades, making it more expensive for tourists to buy goods and services priced in euros. Policies such as tariffs and other economic developments expected to be introduced by Trump's incoming administration will boost the dollar and weaken the euro. The euro will fall to parity against the dollar next year, or even below parity, meaning the two currencies are trading at a 1:1 ratio. 20 of the 27 EU member states use the euro: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain. Now euro parity is back to a very likely scenario “The euro has suffered more than most currencies following Trump’s victory and we doubt the situation will improve anytime soon. Last week the index posted its eighth consecutive weekly gain, an "extreme rise" that has only occurred three times since 2000. Travelers can try to take advantage of these currency dynamics and hold off on shopping until next year. Tariffs and trade policies are the main factors influencing the dynamics of the EURUSD exchange rate. Trump has proposed broad tariffs on trading partners around the world. During the election campaign, he proposed imposing 10% or 20% tariffs on all imports, including those from the EU. Trump vowed last Monday to impose an additional 10% tariff on the Asian giant and a 25% tariff on all products from Canada and Mexico on his first day in office, signaling his willingness to impose import taxes.