On the day Donald Trump was inaugurated for a second term, the main German stock index DAX briefly rose over 21,000 for the first time ever, suggesting that a large share of foreign investors—some estimates guessed around 70 percent—supported Trump’s “Make America Great Again” triumphant return as the fortyseventh U.S. president. This contrasts with the prevailing fear in Germany in light of the threatened higher tariffs and a U.S. retreat from its dominant military support for the Ukraine. When Trump won the 2024 U.S. presidential election in November, the head of the respected Kiel Institute for the World Economy, Moritz Schularick, warned that Trump’s victory “marks the beginning of the most difficult economic moment in the history of the Federal Republic of Germany.
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