DAX Pushes Higher as Trade Talks Ease Tariff Jitters

Germany’s DAX notched a new record high, climbing 0.18% to 24,269.47, as investors responded to signs of progress in US-EU trade negotiations. 

The move capped a third consecutive day of gains for European markets, with the Euro Stoxx 600 inching up 0.07% to 552.71. Wall Street also caught the wave, with the Dow rising 1.78%, the S&P 500 advancing 2.05%, and the Nasdaq surging 2.47%.

The rally followed President Trump’s decision to delay a threatened 50% tariff on EU imports until 9 July, giving breathing room to both sides. The temporary truce came after a call with European Commission President Ursula von der Leyen, who confirmed Brussels was ready to push forward decisively. 

Trump’s prior tariff rhetoric, starting with a 20% “reciprocal” rate in April and a 10% reduction for 90 days, had unnerved markets, but the latest delay brought relief.

What Does This Mean for Me?

Negotiators are expected to meet in Paris next week during the OECD summit, with attention focused on rolling back tariffs on industrial goods and easing US duties on steel, aluminium, and semiconductors. The EU, for its part, postponed a retaliatory package targeting €95 billion in US imports ranging from aircraft to auto parts.

The DAX has surged 22% year-to-date, outperforming global peers, thanks in part to strength in defence and banking stocks. Shares in Rheinmetall AG have skyrocketed 207% on the back of Germany’s €500 billion infrastructure fund and increased defence outlays.