FX.co ★ DAX Slips on Trump's Tariff Threats

On Friday, the DAX index in Frankfurt fell nearly 2%, dipping below the 3,600 mark. This decline erased earlier gains and aligned with significant downturns in other European markets. The selloff was triggered by U.S. President Donald Trump's announcement of potential 50% tariffs on European Union imports starting June 1, due to stalled trade negotiations. Additionally, there were threats of imposing separate tariffs on Apple products if production is not relocated to the United States. However, there was an optimistic note as Germany's GDP growth for the first quarter was revised upward to 0.4% from the initial estimate of 0.2%, thanks to strong trade performance and consumer spending. In terms of corporate performance, the majority of sectors saw losses, with banks, automotive companies, pharmaceutical firms, and IT businesses experiencing the most significant declines.