FX.co ★ DAX Slumps as Auto Tariffs Take a Toll

The DAX index in Frankfurt experienced a decline of over 1.5%, dropping below the 22,500 mark on Thursday, marking a notable underperformance compared to its regional counterparts. This downturn was significantly influenced by weaknesses in the automotive sector. Heightening tensions in international trade, U.S. President Donald Trump announced the imposition of a 25% tariff on all car imports, effective the following week, escalating the ongoing trade dispute with the European Union. Furthermore, he issued a warning of potential increases in tariffs on EU and Canadian imports, should these entities unite against the applied trade measures. In response, Germany’s automotive sector and governmental bodies strongly criticized Trump’s tariff announcement, advocating for prompt negotiations to avert an impending trade conflict. Within the stock market, Mercedes-Benz saw a significant drop of over 5%, while Porsche, BMW, Volkswagen, and Daimler Truck also faced declines, ranging from 3% to 5%. The technology sector, represented by companies such as Infineon Technologies, Siemens, and SAP, also encountered downward pressure.