The recent tariff threats from the United States against the European Union have noticeably put pressure on the DAX, leading to a price correction. US President Donald Trump announced over the weekend that starting August 1, a flat tariff of 30 percent will be imposed on imports from the EU. Only specific sectors such as automobiles, auto parts, and steel and aluminum, which already have high sector tariffs, are exempt from this measure. This step followed unsuccessful negotiations between the US and the EU.
Impact on the DAX
The uncertainty regarding the further development of the trade conflict particularly burdens export-oriented companies in the DAX, especially automobile manufacturers. The financial markets react sensitively to such news: The DAX started weaker on Monday into the new trading week and continued its price correction. A decline of about -0.6% was recorded pre-market.
Technical Analysis
Technically speaking, the DAX remains near its all-time high of 24,647 points recorded on July 10. After a dynamic rally the previous week, the overbought situation led to a gap down on Friday – a significant price drop at the start of the week – which is seen as a classic correction signal. The next support zones are around 24,061 points and below at levels of 23,782 and the March high of 23,476 points.
For investors, this means increased volatility: As long as there is no de-escalation of the trade conflict or clear signals for the continuation of the upward trend, the risk of further setbacks remains. The EU plans to hold consultations in the morning regarding a response to the US tariff threat; the outcome will significantly determine whether the mood in the markets calms down again or worsens further.
This dynamic once again underscores the dependency of European stock markets on international trade policies and global uncertainty.
- Trigger: New US tariffs on EU imports starting in August
- Affected sectors: Export-oriented companies (especially the automobile industry)
- Market reaction: Price correction in the DAX with increased volatility
- Technical levels: Support around 24,061 or below up to approximately 23,476 points; resistance near all-time high at approximately 24,647–24,730 points
- Outlook: Further development heavily depends on the ongoing trade dispute