Background of the Tariff Agreement
After intense negotiations, the USA and China temporarily agreed to lower or suspend their mutual tariffs for 90 days. This provisional agreement was announced on May 12, 2025, and resulted in an immediate positive reaction in the stock markets, including a significant price increase in the Nasdaq in the USA.
Before the deal, the USA under President Trump had imposed extensive “reciprocal” additional tariffs, which affected imports from China by up to 125 percent. The agreement reached now represents a temporary easing and at least short-term mitigation of these protectionist measures.
Impact on the DAX
The DAX reacted positively to this news, as a reduction or suspension of tariffs typically removes trade barriers and thus facilitates export and import activities. Germany, as an export-oriented economy, particularly benefits from more stable trade relations between two of the largest economic powers in the world.
- The DAX’s approach to the 24,000-point mark reflects the increased confidence of investors in an improved global economic development due to fewer trade conflicts.
- This can increase the profits of German companies with high export shares.
- It may enhance investment willingness and generally improve market risk appetite.
Relevance for Investors
This development is significant for investors because it opens potential opportunities:
- Market Opportunities: Recovery in export-dependent sectors such as the automotive industry, mechanical engineering, or chemicals.
- Risks: The agreement is temporarily limited (90 days), which leaves uncertainty about a lasting solution; furthermore, political tensions could flare up again at any time.
In summary, the US-China tariff agreement currently acts as a positive impetus for the DAX and signals hope for a de-escalation in the global trade dispute – which gives investors short-term tailwinds. However, long-term stability depends on the further course of negotiations.