Stock market declines by 1.7% as apprehensions about tariffs escalate, causing stocks to plummet
In a tumultuous week for global markets, German stocks took a significant hit on Friday due to rising trade tensions and pressure from the U.S. on pharmaceutical companies.
U.S. President Donald Trump announced higher tariffs on dozens of countries, including Canada and Switzerland, which added to the uncertainty in the market. This announcement came as a blow to many German companies, particularly exporters, as they face the prospect of increased costs and potential market restrictions.
Heidelberg Materials, Siemens, MTU Aero Engines, Merck, Infineon Technologies, BASF, Rheinmetall, Allianz, Zalando, and many other German companies saw their stocks decline by 2.7 to 3.1%. Notably, BMW, Deutsche Post, and Beiersdorf experienced a more substantial drop.
However, Bayer bucked the trend and gained about 3.2%.
The impact of U.S. tariffs and pharmaceutical price negotiation on German stocks in Q2 2022 is not clearly defined in the current search results. However, related insights provide useful context.
U.S. tariffs on EU goods, including autos, were a significant concern in Q2 2022, with threatened rates between 20–50%, but later settled on a 15% flat tariff for most EU goods in 2025. This relieved immediate market concerns, but the uncertainty over tariffs likely posed downward pressure or volatility on German export-oriented stocks, including those in the pharmaceutical sector if they export to the U.S.
Corporate comments from U.S. companies like Ford and Harley-Davidson indicated that tariffs cut billions from earnings and crimped profits, implying that tariff-related costs worldwide—possibly including German suppliers—could dampen earnings.
The direct impact of pharmaceutical price negotiation in the U.S. on German pharma stocks is not detailed in the results. However, changes in U.S. policy to allow price negotiations on drugs typically introduce pricing pressure on pharma companies globally. This can affect revenues and stock prices of German pharmaceutical companies that sell or license products in the U.S. market.
Meanwhile, the broader economic context from Q2 2022 and later shows mixed trade flows and tariff-driven uncertainty suppressing some exports and imports, which would have influenced German exporters' stock performance, given their exposure to U.S.-Europe trade dynamics.
The HCOB Germany Manufacturing PMI was revised slightly lower to 49.1 in July 2025, indicating a deterioration in manufacturing business conditions. However, the HCOB Eurozone Manufacturing PMI came in at 49.8, suggesting Eurozone manufacturing moved closer to stabilization in the month. Eurozone inflation remained at the European Central Bank's 2% target last month.
The benchmark DAX was down 411.74 points or 1.71% at 23.672.33. E.ON and Commerzbank, two other companies in the benchmark index, are up marginally.
SAP is down nearly 2% after signing a deal to buy SmartRecruiters. Siemens Energy is down 4.1% and Sartorius is declining 3.8%. Daimler Truck Holding is down nearly 6% due to market weakness in North America.
Fresenius Medical Care, Siemens Healthineers, Vonovia, Fresenius, Adidas, Continental, Deutsche Bank, Volkswagen, Qiagen, and Symrise are down 1.3 to 1.7%.
As the trade tensions continue to escalate, it remains to be seen how German stocks will fare in the coming weeks. Further specialized financial analysis reports from that period would be required for a precise assessment of the impact on German stocks in Q2 2022.
In the turbulent Q2 2022 market, financial analysts investigating the impact of U.S. tariffs and pharmaceutical price negotiation on German stocks discovered that increased tariffs and potential market restrictions could have adversely affected export-oriented businesses in Germany, decreasing their stock prices. This volatility was particularly noticeable in sectors such as pharmaceuticals, autos, and manufacturing.
Meanwhile, in the realm of investing, several German companies like Siemens, SAP, Daimler Truck Holding, and Siemens Healthineers saw their stocks decline due to market uncertainty caused by U.S. tariffs and trade tensions. These decreases in stock prices reflect the vulnerability of the industry and finance sectors in Germany to global economic and political developments affecting finance and business worldwide.
