FX.co ★ DAX Drops on Rising US-EU Trade Tensions

On Monday, the DAX index in Frankfurt fell by nearly 1%, hovering around the 24,000 mark, making it one of the poorest performers across European markets. This decline was largely fueled by mounting concerns surrounding President Donald Trump's proposal to introduce a 30% tariff on EU imports starting August 1, following extended trade discussions. European Commission President Ursula von der Leyen showed a willingness to continue negotiations by freezing countermeasures until the August deadline, indicating a potential path to a resolution. In the meanwhile, the upcoming earnings season is anticipated to capture significant attention this week, particularly given the impact on the auto sector. Shares of major automotive companies such as Porsche AG, BMW, Volkswagen, Mercedes-Benz Group, and Porsche Automobil Holding experienced losses ranging from 1.7% to 2.3%. Other sectors like technology and chemicals also faced pressures. Brenntag's shares dropped 3.9% after an adjustment in guidance, and BASF saw a decline of over 1%, both companies attributing these challenges in part to the proposed US tariffs and decelerating global economic growth.