Tariffs threaten: Trump's trade war is causing chaos on the US stock exchanges!

Tariffs threaten: Trump's trade war is causing chaos on the US stock exchanges!

US President Donald Trump has once again threatened drastic tariffs of up to 50 percent on goods from the European Union. This announcement is causing concern among investors who fear a global trade war. Despite this tense situation, losses on the US stock markets remain limited. On Friday, the important indices recorded the following losses: The Dow Jones fell by 0.6 percent to 41,603 points, the Nasdaq by 1.0 percent to 18,737 points and the S&P 500 by 0.7 percent to 5,803 points. Last week, all three indices lost more than two percent each. Loud ZDF The US national debt is currently 120 percent of gross domestic product.

Analysts at Barclays see Trump's tariff announcements as a possible negotiating tactic, but warn of ongoing uncertainties in trade. It is expected that the new import tariffs on EU goods could come into force from June 1st. These developments are causing investors to invest more in gold, which is driving up the price and also attracting shares in South African mining companies.

Market development and interest rate forecasts

The uncertainties surrounding the customs dispute and the US budget situation also have an impact on other markets. Analysts at UBS predict that real U.S. gross domestic product could fall by 1.5 to 2 percentage points this year. Inflation is also expected to reach almost 5 percent if tariffs are not withdrawn. This is particularly evident in the high demand for government bonds, as the prices of ten-year German bonds are rising and the yield falls to 2.625 percent - this is the lowest level since the beginning of March. The interest rate on the ten-year US bond also fell to 4.040 percent, which is a five-and-a-half-month low.

Big tech companies are also facing declines. The so-called “Magnificent Seven” – Apple, Alphabet, Amazon, Meta, Microsoft, Tesla and Nvidia – posted significant losses, with Apple falling 7 percent and Microsoft even falling 9 percent. Manager Magazine reports that sporting goods manufacturers are suffering greatly from high tariffs on production from countries such as Vietnam, Cambodia and Bangladesh. Adidas and Puma suffered losses of 10 and 12 percent respectively, while Nike even fell by 16 percent.

Gold prices and currency movements

The price of gold temporarily reached a record high of $3,167.84 per troy ounce, but later fell to $3,070. This is an indicator of investors' increasing interest in gold as a security investment. A weaker US dollar plays a key role in this. The dollar index fell 0.8 percent, causing the euro to rise to $1.1144, its highest level in half a year. UBS analyst Giovanni Staunovo points out that concerns about the US fiscal situation and potential tax cuts could further weaken the dollar.

Given these developments, it remains to be seen how the markets and geopolitical conditions will develop in the coming weeks. Investors must prepare for more volatility as uncertainties in global trade continue to grow.