FRANKFURT (dpa-AFX) – Threatening tariffs by US President Donald Trump in the dispute over Greenland weighed on the DAX on Monday. The leading index fought for the psychologically highly regarded mark of 25,000 points and ultimately fell by 1.34 percent to 24,959.06 points.
There was an escalation between Washington and Europe over the weekend, which is why another trade dispute could now be on the horizon. Trump claims the Arctic island of Greenland, which belongs to Denmark, for the USA. The European NATO partners reject this, which is why Trump wants to impose new punitive tariffs of 10 percent from February 1st. From June 1st it should be 25 percent. A special EU summit will take place in Brussels on Thursday to discuss how the EU can best respond to Trump’s threats.
Last Tuesday, the Dax climbed to a record high of over 25,500 points. Now he has been “hit by the tariff hammer” again, and this is “about more than just trade policy,” as Christine Romar of CMC Markets commented. The new conflict is “about the future of transatlantic relations, about the future of NATO and about the entire trade policy order between two of the world’s largest economic powers.” The US stock exchanges are closed this Monday and the indications in New York point to a deep red opening on Tuesday, but such an escalation is far from being priced in, wrote the CMC Europe boss.
The MDAX of medium-sized stocks ended the day 1.61 percent lower at 31,385.57 points. Losses were also recorded across Europe. The EuroStoxx 50 lost 1.72 percent to 5,925.82 points and the leading stock markets also fell in Switzerland and Great Britain.
According to Thomas Gitzel, chief economist at VP Bank, the Greenland dispute shows that the trade disputes are “far from being resolved”. So far, the tariffs imposed have hardly damaged the US economy and in Europe there have recently been positive economic surprises in Germany. But the Greenland conflict calls for caution. Global economic development stands “on feet of clay”.
German auto stocks in particular came under pressure in view of customs concerns. The European industry index temporarily fell to its lowest level since October. BMW temporarily fell by a good 7 percent – additionally burdened by a comment from Berenberg Bank, which sees a difficult demand situation in China in the premium segment. Ultimately, the titles fell by 3.4 percent. Mercedes (Mercedes-Benz Group (ex Daimler)) fell by 2.2 percent. VW (Volkswagen (VW) vz) and Porsche AG (Porsche vz) lost a little less than 3 percent.
Adidas (adidas) lost 5.2 percent as the bottom of the DAX. According to analyst Thierry Cota from Bank of America, the sporting goods manufacturer is likely to have missed market expectations with its sales in the final quarter of 2025. This put additional pressure on investor sentiment, which was already weak due to tariffs.
Bayer (Bayer) jumped 7.0 percent. The US Supreme Court accepted the Durnell glyphosate case for review on Friday. This increases the prospects of a landmark judgment in the long-lasting, stressful legal dispute over the weed killer.
Rheinmetall’s armaments value came back closer to its October record and closed 1.0 percent higher. RENK and HENSOLDT remained relatively stable in the face of the renewed growing geopolitical uncertainty in the weak market./ck/he
— By Claudia Müller, dpa-AFX —