German Chancellor Friedrich Merz of the Christian Democratic Union (CDU) expressed continued optimism regarding the ongoing trade dispute with the United States. Following a cabinet meeting in Bavaria, Merz stated he is maintaining close communication with both the U.S. President and the President of the European Commission.
The stated objective remains to swiftly reach a resolution that facilitates trade with the United States and anticipates a return to lower tariffs. While acknowledging the challenges ahead, Merz conveyed confidence that a positive outcome can be achieved.
He emphasized that negotiations have time until the end of July to find a consensus. Notably, Merz indicated he advocated for delaying the implementation of reciprocal tariffs, which would have automatically taken effect yesterday. He cautioned, however, that the U.S. government should not underestimate the European Union’s preparedness to respond with similar measures in the event of excessive import duties. The EU, he affirmed, prefers a negotiated solution.
