DAX Down Sharply As U.S.-China Trade Tensions Weigh On Sentiment

(RTTNews) - German stocks are down sharply on Friday, changing course after previous session's upmove, as investors are worried that the escalating trade tensions between the U.S. and China could significantly impede global economic growth.

After the U.S. said that Chinese goods will be taxed at 145% as against the earlier proposed levy of 125%, China's finance ministry has revealed that it will raise tariffs on U.S. goods to 125% from 84%, effective Saturday (April 12).

China has also stated that "there is no longer any possibility of American products being accepted in China's market."

The benchmark DAX was down 379.80 points or 1.84% at 20,209.55, off a low of 20,178.28 it touched earlier in the sessio.

MTU Aero Engines is down nearly 6%. Deutsche Telekom, Siemens, BASF, Adidas, Rheinmetall and Daimler Truck Holding are down 2 to 3.4%.

SAP, Volkswagen, Deutsche Post, Fresenius, Siemens Energy, Heidelberg Materials, Zalando, Henkel, Bayer, Allianz, Fresenius Medical Care and Deutsche Bank are declining 1 to 2%.

E.ON is gaining 1.8%. RWE is up 1.2% and Qiagen is rising 1.1%, while Sartorius and Vonovia are up 1% and 0.9%, respectively. Merck is edging up marginally.

Final data from DeStatis confirmed Germany's annual inflation rate was at 2.2% in March 2025, slightly easing from 2.3%, marking the softest pace since last November.

On a monthly basis, consumer prices advanced by 0.3% in March, following a 0.4% rise in February. Meanwhile, the EU-harmonised inflation rate increased 2.3% year-over-year, after a 2.6% rise in February, while monthly harmonised consumer prices climbed 0.4%, after a 0.5% gain.