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A day after hitting record highs, German stocks are deep down in negative territory Tuesday morning amid rising worries about a global trade war and its impact on growth, as new U.S. tariffs on Mexico, Canada and China become effective today.<\/p>\n
Adding to the woes, U.S. President Donald Trump reiterated that he will impose reciprocal duties with effect from April 2, and the first target will be a levy on agricultural products.<\/p>\n
In retaliation, Canada announced 25% tariffs on $107 billion worth of U.S. goods, with $20.7 billion in immediate effect. Mexican President Claudia Sheinbaum said her country is preparing countermeasures.<\/p>\n
China has announced 15% tariffs on U.S. chicken, wheat, corn and cotton, plus 10 percent cent tariffs on soybeans, pork, beef and dairy beginning March 10.<\/p>\n
The benchmark DAX was down 466.46 points or 2.02% at 22,672.05 a little while ago.<\/p>\n
Defense stocks are finding some support as European Commission President Ursula von der Leyen unveiled a rearmament plan capable of mobilizing about 800 million euros for Europe.<\/p>\n
Continental is plunging nearly 9%. The company announced that it expects limited improvement to profitability this year.<\/p>\n
Fresenius Medical Care is down 7.6%. Daimler Truck Holding, BMW, Deutsche Bank, Siemens Energy, Mercedes-Benz, Heidelberg, Volkswagen, Commerzbank, Siemens, BASF, Porsche, Infineon and Adidas are down 3 to 6%.<\/p>\n
Zalando, Deutsche Post, Brenntag, SAP, Bayer, Qiagen, Deutsche Telekom and Allianz are also notably lower.<\/p>\n
Rheinmetall is rising nearly 2%. MTU Aero Engines is gaining about 1.5% and E.On is up 1.3%. Deutsche Boerse, Vonovia and Henkel are modestly higher.<\/p>\n
On the economic front, data from Eurostat said the unemployment rate in the euro area remained flat at 6.2% in January. <\/p>\n<\/p>\n<\/div>\n