DAX Under Pressure: Trade Dispute with the USA Escalates
The DAX begins the week with significant losses as the trade dispute between the USA and the EU weighs on investor sentiment. US President Donald Trump has announced that starting August 1, a flat tariff of 30 percent will be imposed on imports from the EU. This escalation in the conflict particularly affects strongly export-oriented German companies such as car manufacturers and could lead to a minor crash in the DAX.
Tensions between the USA and EU Increase
The negotiations between the USA and the EU have thus far been unsuccessful, and Trump threatens further tariff increases in response to countermeasures. Despite this negative news, some investors remain optimistic regarding the upcoming earnings season, indicating a certain confidence in corporate profits.
US Tariffs as a Means of Budget Financing
Trump’s strategy behind the tariffs seems to aim at increasing the financing of the US budget through tariff revenues. These revenues have already reached record levels and are expected to continue rising. The situation remains tense, with uncertainty about whether this is just another escalation step or a final move before a possible resolution in the trade dispute.
In summary:
- DAX starts weak due to looming high US tariffs on EU imports.
- Trade dispute escalates due to Trump’s announcement of a 30% tariff starting in August.
- Strongly export-oriented companies in the DAX are particularly affected.
- Investors remain optimistic despite everything because of the upcoming earnings season.
- US tariffs serve Trump’s budget financing, not just trade policy.
These developments currently shape the mood on the German stock markets at the beginning of the week.