DAX Rallies on US-EU Trade Deal

Frankfurt’s DAX 40 index rose nearly 1% to 24,420 on Monday, edging closer to its all-time high of 24,639 set earlier this month, after the US and EU reached a significant trade agreement aimed at easing transatlantic tensions. Under the deal, a base tariff of 15% will apply to most EU exports to the US, including automobiles, semiconductors, and pharmaceutical products. However, steel and aluminum will still face 50% tariffs—albeit only beyond specific quotas—while aerospace components, certain chemicals, and raw materials will be exempt from duties. As part of the agreement, the EU will commit to purchasing $750 billion worth of US energy and additional military equipment. Despite the tariff relief, a 15% rate still poses a challenge for European exporters. Nevertheless, automaker stocks rallied on the news, with Porsche jumping 3.3%, followed by Mercedes-Benz (+2%), Volkswagen (+1.9%), and BMW (+1%).