BRUSSELS (dpa-AFX) - German stocks are down sharply Thursday morning due to heavy selling almost across the board as investors react to the U.S. government's announcement of 'reciprocal tariffs.'
U.S. President Donald Trump announced a 10% baseline on all US imports and a 20% rate for goods from the European Union, with a steeper 25% tariff on imported cars set to take effect immediately.
The much steeper-than-expected tariffs on US trade partners, has heightened concerns over a global trade war that could destabilize major economies.
President of the European Commission, Ursula von der Leyen posted on X that the universal tariffs announced by the U.S. are a major blow to businesses and consumers worldwide. 'Europe is prepared to respond. We'll always protect our interests and values. We're also ready to engage,' she wrote.
Some Asian countries such as China, Japan and South Korea have reportedly agreed to jointly respond to the U.S. tariffs.
The benchmark DAX, which plunged nearly 570 points to a more than 2-month low of 21,805.77 in early trades, was down 300.39 points or 1.34% at 22,074.71 a little while ago.
Adidas, the biggest loser in the index, is down nearly 10%, as fashion and sportswear industries are likely to be severely hit by steep tariffs.
Commerzbank is declining 5.7% and Deutsche Bank is down 4.3%. Deutsche Post is lower by about 4.1%.
Siemens, Siemens Healthineers, MTU Aero Engines, Infineon Technologies, BASF, Heidelberg Materials and SAP are down 2.3 to 4%.
Porsche Automobil Holding, Continental, Symrise and Allianz are also notably lower.
Vonovia is up nearly 4%. E.ON, Beiersdorf, Fresenius Medical Care, Qiagen, Henkel and Rheinmetall are gaining 1.3 to 2%.
Hannover Rueck, Deutsche Telekom, BMW, Deutsche Boerse, RWE and Bayer are up with moderate gains.
Data from S&P Global said the HCOB Germany Composite PMI for March was revised higher to 51.3 from a preliminary of 50.9 and compared to 50.4 in February. The reading marked the strongest expansion in the private sector in ten months.
The manufacturing PMI came in with a score of 48.3, compared to 46.5 in February, while the service sector PMI moderated slightly to 50.9 in March from 51.1 a month earlier.
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