Porsche, VW, Redcare Pharmacy, Nordex, SUSS, and TeamViewer are under scrutiny as DAX strives towards hitting the 24,000-point milestone.
The ongoing trade dispute between the United States and the European Union (EU) has taken a toll on the European economy, with a 15% base tariff imposed on EU goods causing significant negative effects.
The tariff has primarily harmed the competitiveness of European exporters, raising costs and squeezing margins. This is particularly evident in sectors like automotive manufacturing, which were previously facing even higher tariffs. The persistent economic costs and uncertainty introduced by the tariff regime are a persistent concern for businesses.
Moreover, the deal requires the EU to commit $600 billion in investments in the US and purchase $750 billion of US energy and military equipment. While these commitments may stabilize trade relations, they also mean a large outflow of capital and market concessions from the EU side, potentially limiting EU economic flexibility.
The economic impact of these tariffs is evident in the slowing Euro area economic activity. GDP growth is forecast to moderate to around 0.5–0.75% annualized in late 2025, partially due to tariff-related pressures. However, a shift toward supporting domestic European demand may partly mitigate some negative effects by reducing reliance on exports to the US.
Inflationary pressure in the US could also be a result of higher tariffs, causing indirect medium-term effects on Europe. The immediate concern, however, remains the damage tariffs do to European exporters.
As the trade dispute between the EU and the US continues, the German benchmark index shows little movement, possibly due to lingering sentiment from the dispute. Companies like SUSS MicroTec have revised down their margin forecasts for the current fiscal year, reflecting the ongoing concerns.
The DAX, Germany's blue-chip index, is preoccupied with the potential long-term impact of a 15% base tariff on the European economy. Companies like Teamviewer are topping the charts, while others like Nordex have seen mixed performance.
The trade spat is causing market participants to reassess the situation after an initial, cautious euphoria. The long-term impact of the tariffs acts as a drag on the EU economy, with reduced export competitiveness, GDP growth moderation, and significant investment commitments favoring the US.
As we move into the earnings season, market participants are refocusing on company performances. The European Union faces a challenging trade environment with lasting economic costs, though some mitigation may come via stronger domestic demand within the EU.
DER AKTIONÄR will keep the public updated on further developments regarding the US-EU trade spat and its impact on the European economy.
Investors in the European industry are expressing concerns about the long-term effects of the trade dispute on their businesses and margins, as the 15% base tariff on EU goods creates uncertainty and increases costs. The finance sector is closely monitoring the situation, particularly the potential repercussions on GDP growth and inflation due to the trade spat.
