Current Situation on the German Stock Market
The German stock market, particularly the DAX, is experiencing a dramatic sell-off wave. This development is primarily due to the aggressive US tariff policy initiated by President Donald Trump. The measures have led to global market volatility and heightened fears of a recession.
Causes of the Crisis
US Tariff Policy: On April 2, 2025, President Trump announced comprehensive tariffs known as “Liberation Day.” These tariffs affect almost all imports into the USA and are particularly high for countries like China (54%), Vietnam (46%), and Thailand (36%). These measures were taken under the authority of the International Emergency Economic Powers Act, as the persistent US trade deficit was declared a national emergency.
Global Market Reaction: The announcement of these tariffs has led to a massive loss of confidence among investors. The Dow Jones dropped over 4,000 points within two days – a historic decline. Other markets, such as the Nikkei in Japan and the TSX in Canada, also experienced significant losses.
Reaction of the DAX: In Germany, this wave of selling has also become noticeable, with the DAX continuing to fall. After initial gains at the beginning of the year, there are now significant losses reported.
Effects on Private Investors
- The current market situation is very volatile, presenting both opportunities and risks for private investors.
- Many investors need to reassess their portfolios and may need to make adjustments to counter potential losses.
- A broad diversification of investments could help minimize risk.
Global Reactions
The global economy is reacting with concern to these developments:
- China has already threatened or begun countermeasures.
- Other countries, such as Canada and Mexico, are also feeling the impacts of the new US tariffs.
- The risk of a recession due to these trade conflicts is significantly increasing worldwide.
Overall, the global financial market is in a state of increased uncertainty and volatility due to the US tariff policy under President Trump’s leadership.