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EU Secures Lower US Tariffs as German Economy Contracts
22 Aug
Summary
- German economy contracted 0.3% in Q2 2025
- EU negotiates reduced US tariffs on certain sectors
- Activist investor Cevian takes 3% stake in AkzoNobel
On August 22nd, 2025, European shares dipped slightly as traders remained cautious ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech. The pan-European STOXX 600 index fell 0.1%, though it was still on track for a third consecutive weekly gain.
Most regional bourses were mixed, with Germany's blue-chip DAX index declining 0.2%. This came after the German statistics office revealed that the country's economy contracted by 0.3% in the second quarter of 2025, more than initially expected. The report indicated that industrial production performed worse than assumed.
Amid the economic slowdown, the European Union pushed for reduced U.S. tariffs on certain sectors after locking in a trade deal. The EU said it would work to ensure lower tariffs on car exports applied retroactively from August 1st, while continuing to press for a preferential levy on wine and spirits.
In other news, Dulux paints maker AkzoNobel saw its shares rise 4.3% after activist investor Cevian Capital took a 3% stake in the company, according to a filing by the Dutch market regulator.
