DAX on record: Investors defy Trump's tariff fears and crises!

DAX on record: Investors defy Trump's tariff fears and crises!

On July 12, 2025, the stock market appears resilient, despite ongoing geopolitical tensions and uncertainties triggered by US President Donald Trump's tariff plans. The DAX has reached a record high and the markets in the USA and Switzerland are following this trend. This is attributed in part to a number of optimistic factors that encourage investors to invest in stocks even during uncertain times.

However, the European financial landscape remains tense. Trump is planning extensive tariffs, including an exceptionally high 25 percent on car imports, which is particularly making German car manufacturers such as BMW and Volkswagen sweat. These developments have already led to the first price losses for DAX shares; the index itself is currently hovering around 22,385 points. Finanzmarkt.info reports on a nervous stock market atmosphere that is repeatedly disrupted by global trade conflicts.

The reasons for the increase

Still, there are several factors supporting the rise in stock prices in 2025. According to the NZZ are these: The belief in Trump's statement that the announced tariffs will have less impact than feared. In addition, US economic indicators suggest that a recession is not in sight. Hopes for an impulsive recovery in the European economy, supported by investments in the defense and infrastructure sectors, are also encouraging investors.

Strong demand from U.S. retail investors is reflected in the “buy the dip” strategy, which involves taking setbacks to buy stocks. Geopolitical conflicts, such as those in Ukraine, also appear to have only a minor impact on corporate profits, which is boosting investor confidence. Despite all these positive aspects, there remains a risk of a significant decline in growth in the USA due to increasing tariffs and their potentially inflationary effects.

Macroeconomic challenges

In the wake of the tariff announcements, investors are looking for safe investments. Gold prices have reached their all-time high of over $3,147 an ounce while the market as a whole is on the rocks. Analysts warn of a possible “subsidy race” and an explosion in inflation. The European Central Bank (ECB) is reacting to the cooling inflation with relaxation policies.

The dynamics on the markets, especially in the DAX, are volatile, with numerous challenges such as political decisions and trade conflicts. In addition, technology stocks are under selling pressure, while defensive stocks are receiving more attention.

In this mixed market situation, a broadly diversified investment strategy is recommended. Looking for opportunities in technological innovation leaders and regional recovery sectors could be rewarding in the long term, while trade-dependent sectors face major difficulties.

In summary, the situation on the markets remains tense. While numerous optimism factors point to stabilization, the uncertainties surrounding Trump and his tariff policy cannot be ignored. Investors should therefore adapt their strategies and remain flexible in order to react to new developments.