FX.co ★ DAX Falls As Automakers Decline On Tariff Concerns

German stocks experienced a significant decline on Tuesday, with automakers bearing substantial losses following U.S. President-elect Donald Trump's declaration of new tariffs targeting China, Canada, and Mexico. This development has heightened fears of a reemergence of trade tensions. Notably, automakers such as BMW, Mercedes Benz, and Volkswagen saw their stocks drop by 2 to 3 percent. Concurrently, the DAX index decreased by 125 points, or 0.6 percent, settling at 19,280, following a previous session's gain of 0.4 percent. Additionally, Eurozone government bond yields slightly increased, ahead of inflation data that could potentially sway European Central Bank policy decisions. Further compounding the economic uncertainty are intensified geopolitical tensions and escalating political disputes surrounding the French budget.