Germany's DAX stock index plunges by 10% as tariff fallout continues

Germany's leading stock market index, the DAX, plummeted by around 10% at the start of trading on Monday, falling to 18,489 points as investors continue to react to the sweeping global tariffs imposed by the Trump administration.

It was followed by a slight uptick to 19,000 moments later.

Asian markets had previously also opened to sharp declines on what was the first day of trading after new blanket tariffs of 10% on all imports to the United States came into effect on Saturday.

Additional levies on a host of trading partners are due to be imposed on Wednesday, including a 20% tariff on imports from the European Union.

Germany's export-based economy is set to be hit particularly hard by the new measures, and while US President Donald Trump has signalled he is open to negotiating, his Commerce Secretary Howard Lutnick has stressed Washington is sticking out its new course, despite fears that US consumers will be faced with a surge in inflation.

Global markets have reacted to the massive tariffs with a worldwide sell-off since Trump announced them last Wednesday, as investors worry about the economic effects and instability of the measures.

On Friday, the DAX - which measures the performance of 40 leading German companies on the Frankfurt Stock Exchange - ended the day 4.95% down at 20.642, following months of intermittently posting record gains.

Across the entire week, Germany's leading stock index plummeted by more than 8%, the biggest weekly fall since Russia launched its full-scale invasion of Ukraine in the spring of 2022.

EU trade ministers were due to meet in Luxembourg on Monday to discuss ways to convince Trump to backtrack on the tariffs, but the bloc has made it clear that it will impose reciprocal measures in case no negotiated solution can be found.