Trump's tariff threat causes DAX to fall below 24,000 points - what now?

Trump's tariff threat causes DAX to fall below 24,000 points - what now?

US President Donald Trump is once again causing uncertainty in the markets. On June 1st he is threatening punitive tariffs of 50% on imports from the EU. This causes the DAX to fall below the 24,000 point mark and is trading at 23,600 points at the time of reporting - a decline of 1.7%. Alexander Krüger, chief economist at Hauck Aufhäuser Lamp, has identified the return of customs concerns as a factor in this decline. It remains unclear whether Trump will actually implement the announced tariffs; In the past he had often threatened such measures, only to then backtrack daily news reported.

The negative effects continued on the US markets. The indices opened with losses: the Dow Jones fell 0.9%, the Nasdaq 100 fell 1.1% and the S&P 500 fell 1%. Also worrying is the rising US national debt, which could increase by another $3.8 trillion as a result of a new tax package. This could lead to investors selling more US government bonds, which in turn will put pressure on American finances. Yields on 30-year Treasury bonds are now at 5.03%, while 10-year yields are at 4.53%.

The reactions to Trump's announcements

Ahead of the tariff increases, Trump announced that he would introduce a 90-day tariff pause on certain imports. However, this does not apply to China, where tariffs have been increased to 125%. After the announcement of the tariff break, the stock markets reacted with an increase; the DAX rose over 8% to 21,207.76 points, representing the largest daily gain since 2020. The US indices also experienced a recovery, with a gain of 7.87% for the Dow Jones and 9.52% for the S&P 500. Market observers believe that the tariff break was initiated due to stock market turmoil in order to stabilize the financial market. ZDF reported that Trump justified the decision with the unrest and fear among the population.

The companies' reactions are also complex. While Volvo Cars plans to pass on tariff costs to US customers, which could lead to higher prices, Apple has threatened to be hit with 25% tariffs if iPhones are not produced in the US. Bayer also emerged as the biggest DAX winner and is receiving support for the Eylea treatment. Telekom, which has secured the broadcasting rights for the 2026 World Cup, shows itself in a further positive light.

Market developments and outlook

Due to the uncertain market developments, gold rose by 1.5% and reached $3,344 per troy ounce. Brent crude oil prices fell slightly by 0.5% to $64.12 per barrel. While the price of Bitcoin has fallen sharply, it is now just under $108,000, having previously reached a high of $112,000. Germany's GDP data, however, shows growth of 0.4% in the first quarter, better than the previously reported 0.2%.

In this turbulent market situation, it remains to be seen how the situation will develop and whether Trump's threats with tariffs will actually be implemented. Market uncertainty could have long-term effects on economic stability in both the US and the EU.