The drastic tariff policy of US President Donald Trump is causing significant turmoil in the financial markets. With the announcement of a 20 percent tariff on imports from the EU and other countries, Trump has triggered a market upheaval that sent the DAX into a ‘Black Monday’. Particularly concerning is the escalation in the trade conflict with China, where Trump is even planning tariffs of up to 125 percent. In response, the EU has postponed its counter-tariffs by 90 days to seek a negotiated solution. Experts warn of the far-reaching consequences of this protectionist policy and a looming global recession. Leading German economic institutes have drastically lowered their growth forecast for 2025, attributing the cause to not only the trade conflicts but also structural problems. Reforms are urgently needed to secure Germany’s competitiveness. The uncertainty in the financial markets has led to massive price drops. Investors are unsettled, and technical issues with trading apps like Trade Republic are exacerbating the situation. Experts recommend a long-term investment horizon and a diversified strategy. Despite cautious signs of recovery, the situation remains uncertain due to unpredictable developments in the trade conflict.
10.04.2025