Trump's economic policies are likely to create a challenging environment for international trade, particularly affecting countries like Germany that are heavily dependent on exports.
The surge in Trump Media's stock highlights the speculative nature of investments surrounding political outcomes, reflecting investor sentiment rather than the company's financial health.
If Trump implements his proposed tariffs, German companies may face increased operational costs and reduced competitiveness in the global market.
The stock value of Trump Media could experience volatility depending on Trump's political fortunes and the company's ability to generate revenue in a competitive landscape.
Donald Trump's victory in the US election has significant implications for the global economy, particularly for German companies that rely heavily on exports. Experts warn that Trump's protectionist policies could reignite trade conflicts, leading to a potential trade war that could cost the German economy up to 180 billion euros over the next four years. The Hans Böckler Foundation and the German Economic Institute emphasize the need for German businesses to diversify their supply chains and prepare for increased tariffs on imports, particularly from China.
In a related development, Trump's media company, Trump Media, saw a sharp increase in its stock by approximately 15 percent on Wall Street following his election victory. Investors are optimistic that a Trump presidency could enhance the value of Truth Social, despite the company currently generating negligible revenue. Trump's media venture, which has a market value nearing $8 billion, faces skepticism regarding its financial sustainability, especially if he does not secure the presidency.
