The DAX opened today with a gap down, testing the upper boundary of its previous uptrend channel. 

Trump surprised markets by announcing auto tariffs six days earlier than the expected April 2 timeline. The 25% tariff on autos came with a new warning: 

    “What we are going to be doing is a 25% tariff on all cars that are not made in the United States,” Trump declared. 

    Later that night, he added: “If the European Union works with Canada to do economic harm to the USA, large-scale tariffs, far larger than currently planned will be placed on them both, in order to protect the best friend that each of those two countries has ever had!” 

The European Union is now preparing a response to the latest tariff escalation. France has called on the European Commission to activate the Anti-Coercion Instrument (ACI), the EU’s most powerful trade weapon. 

This tool offers wide flexibility, including the imposition of tariffs, trade restrictions, limits on intellectual property rights, and service barriers. 

The risk of an escalating trade war has significantly increased in the last 24 hours. 

(Dax) 

The trendline, which is currently acting as support, stands at 22,470 today. Below that, horizontal support lies at 22,230. If both the trendline and horizontal support break, a new downward wave could begin for DAX, potentially driving the index toward the 21,000 level and presenting a significant buying opportunity. 

However, for now, the trendline is holding, and today’s large gap is gradually narrowing. 

For a longer-term perspective, please refer to our earlier analysis.