German stocks slide amid concerns over potential higher US tariffs under Trump presidency
German shares fell on Wednesday amid concerns over protectionism and elevated tariff barriers anticipated under the forthcoming Donald Trump presidency, according to data released by the Deutsche Boerse group.
Germany's benchmark DAX index initially showed gains but soon shifted to negative territory. The DAX index closed at 19,039.31 points, marking a decline of 216.96 points, or 1.13 percent.
In the continuously updated index of the 40 major companies on the Deutsche Boerse, more than three-quarters of the stocks saw no growth, with 31 stocks recording losses. Only nine German companies experienced a rise in share prices.
The German automobile sector was particularly affected following the U.S. election, as investors expressed concerns about potential punitive tariffs from the U.S. on German imports. Share price drops on Wednesday included losses of 5.48 percent for Volkswagen, 6.95 percent for Mercedes-Benz, and 6.4 percent for BMW.
Analysts noted that BMW's underwhelming quarterly results have negatively impacted German automakers listed in the DAX index. Additionally, German companies are increasingly apprehensive about the possibility of significant import tariffs, which could lead to higher costs and considerable sales challenges in the U.S., a key market for German enterprises.
Donald Trump's economic policy is expected to "pose considerable challenges for Germany and the European Union (EU)," according to a report released on the same day by the German think tank ifo Institute.
"We must be prepared for the U.S. to further distance itself from open, global cooperation," cautioned Lisandra Flach, Director of the Center for International Economics at ifo. "Germany and the EU must now strengthen their position with measures of their own. These include deeper integration of the EU services market and credible retaliatory measures against the U.S.," she said.
(Source: Xinhua)
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