Trump's tariffs: a shock for the global economy and German companies!

Trump's tariffs: a shock for the global economy and German companies!

President Donald Trump announced flat-rate tariffs of ten percent on goods from all countries. These tariffs are now in force and were announced during an event in the Rose garden. According to vienna.at from April 9th ​​will also apply higher tariffs for countries with a large trade deficit.

Some goods are excluded from the new tariffs. These exceptions include steel and aluminum products, cars and auto parts, copper, medicinal products, semiconductors, wood products and certain critical minerals. The White House has signaled that Trump could soon announce special tariffs for these excluded goods. In this announcement, Trump described the day of the customs declaration as a "day of liberation", which is considered the most aggressive step of his trade policy.

global reactions and market reactions

The announcement of the tariffs has already shown significant effects on the stock markets. After the announcement, the share prices fell worldwide. The Dow Jones, for example, was initially stable, but quickly lost three percent, especially due to the new auto tariffs, the Ford and General Motors. The S&P 500 also showed a high volatility, while export -strong companies, such as Caterpillar and Boeing, suffered. The DAX in Germany recorded a decrease of five percent in a week, with companies such as Volkswagen, BMW and Daimler particularly affected. These developments confirm that Justtrade.com shows that markets are sensitive to customs duties.

Eric Lascelles from RBC Global Asset Management warned of possible sudden corrections in the markets. The tariffs have influenced not only the share prices, but also the corporate profits and production costs, which leads to higher prices for imports and loads the supply chains. The automotive and technologyectors are particularly affected, in which higher tariffs can significantly increase costs on components from China.

effects on the economy

The new tariffs also bring considerable challenges for the German economy. As an export -oriented economy, Germany is particularly affected in the areas of automotive industry, mechanical engineering and chemical industry. Suppliers such as Bosch and Continental are strongly geared towards the US market and could suffer from the new conditions. Nevertheless, there are also opportunities: Companies could shift production facilities to the USA, while the EU checks a reduction in its own tariffs on US products. According to Investweek.com it has been historically proven that governments use tariffs to support local industries or to generate income.

The tariffs are considered to be tax taxes on imported goods and can have significant effects on international trade relationships. For consumers, this often means higher prices for import goods, which means that the purchasing power disappears. However, companies that can use the price advantage over foreign providers benefit. In the long run, tariffs could lead to inefficiencies, less innovation and higher supply chain costs.

views and investor strategies

The possibility of a global trade conflict could plunge the global economy into a crisis. Some countries, including China and Germany, have already announced that they defend themselves against the tariffs. The EU Commission has prepared countermeasures, while Trump shows willingness to talk and promises negotiations.

Investors should follow the developments closely and adapt their portfolios. The diversification of their investments and the focus on companies that work in the home market could be a strategy for risk reduction. Estonishing markets could also gain in importance, and companies with the power of pricing are potentially relatively resistant to the new tariffs.