The Escalation of Tariff Threats
The current correction in the DAX is a direct result of the recent tariff threat from the USA against the European Union. US President Donald Trump announced that as of August 1, imports from the EU will be subject to a flat tariff of 30 percent, with even higher rates potentially applying to certain industries. This escalation came as a surprise, after investors had previously hoped for a swift agreement, pushing the DAX to a record high of 24,639 points.
Impact on the DAX
The immediate reaction on Monday was a decline in the DAX of about 0.76 percent to around 24,070 points in the first hour of trading. Experts assess the situation as very uncertain: It is unclear whether any negotiating space will be found by the end of the month or if further escalation will occur. The uncertainty leads to increased volatility in the stock markets, particularly affecting strongly export-oriented companies such as automakers.
What does this mean for private investors?
- Increased Caution: Volatility is expected to increase over the summer.
- Monitoring Key Support Levels: The DAX may continue to fall in the short term; target levels are around 23,782 points and below at the March high of 23,476 points.
- Risk of More Profit-Taking: After a strong annual gain of nearly 24 percent, investors are increasingly taking profits in light of the heightened tariff risks.
Overall, this demonstrates a strained market situation due to the trade policy tensions between the USA and EU, with potentially serious impacts not only for Germany but also for the entire European economy and its stock markets. Private investors should closely monitor these developments and adjust or secure their portfolios accordingly.