Germany’s DAX index recovers as US suspends tariffs on Mexico, Canada #NewsGerman

German stocks stabilized on Tuesday after the United States suspended planned tariffs of 25% on Mexico and Canada.

The DAX, Germany’s top stock market index, rose by 0.07% in early trading to 21,443.71 points, having dropped sharply on Monday.

The second-tier MDAX was also stable, up 0.11% to 26,358.80 points, while the eurozone’s leading index, EURO STOXX 50, inched up by 0.12%.

Fears of an escalating trade conflict hit global markets on Monday, with Germany’s export-based economy at particular risk.

The DAX is still down significantly from Friday’s record high of 21,800 points.

Thomas Altmann from wealth management firm QC Partners said it was “unclear how things will go in terms of tariffs” after US President Donald Trump paused the customs duties for an initial period of 30 days following promises from Mexico and Canada to increase border security measures.

“Whether they do go into force in 30 days, or whether Donald Trump wants to extract further concessions from both neighbouring countries before then, remains open,” said Altmann.

It is also too early for the European Union to “breathe a sigh of relief,” he argued, as Trump has promised to extend tariffs on European goods.

US tariffs of 10% on Chinese goods took effect on Tuesday, with Beijing set to retaliate with duties of 15% on US liquefied natural gas (LNG) products and coal.