Merz and Biden Aim to Resolve Trade Dispute Promptly
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Merz and Trump aim for prompt resolution of trade disagreement - Trump and Merz aim for swift resolution in the trade dispute
While Merz' stance aligns with the U.S. President's call for an immediate end to hostilities in Ukraine, asserting Russia must agree to a ceasefire for negotiations to take place, Biden has pledged strong support for Germany's efforts, together with France, Britain, Poland, and other European partners, to establish long-lasting peace.
During their conversation, Biden congratulated Merz on his appointment as Federal Chancellor. Merz acknowledged the continued importance of the U.S. as an essential ally and partner for Germany, over eight decades since the end of World War II. Both leaders agreed to maintain regular communication and scheduled reciprocal visits to their respective countries.
- Friedrich Merz
- Joe Biden
- Trade Dispute
- U.S. President
- CDU
- Ukraine
- Phone Call
- Inauguration
- Press Reports
- Russia
Getting to the Table
As tensions persist, the U.S. and EU continue to engage in trade negotiations. The U.S. has imposed tariffs on EU goods, including aluminum, steel, cars, and a 10% tariff on all EU imports. In response, the EU contemplates countermeasures that may include tariffs on up to €95 billion worth of U.S. products, affecting industries like aerospace and agri-food products.
Impact on Germany
Germany is deeply affected by these tariffs, given the U.S. is its primary export market. In 2023, Germany's exports to the U.S. reached approximately €161 billion. Various sectors, including automotive and steel industries, feel the impact of the dispute. German winemakers also express concerns over possible additional tariffs, which could further diminish their revenue in the U.S. market.
Political Steps Forward
The EU Commission President, Ursula von der Leyen, emphasizes the need for a comprehensive trade agreement before any significant diplomatic meetings can occur, such as a potential visit to the U.S. Both parties are striving to protect their economic interests and negotiate more favorable trade terms.
- Friedrich Merz, as the newly appointed Federal Chancellor of Germany, is advocating for a prompt resolution to the ongoing trade dispute with the United States, echoing the sentiments of the U.S. President.
- In their recent phone call, President Joe Biden and Merz discussed the trade dispute, emphasizing the urgency to "hurry, settle" the matter and signed off with plans for regular communication and bilateral visits.
- Despite the trade dispute, the CDU leader Merz reiterated Germany's military support for Ukraine in maintaining peace, urging Russia to agree to a ceasefire for negotiations to take place.
- As Trump's trade policies persist, the EU continues to discuss countermeasures, potentially impacting industries like aerospace and agri-food products, which are crucial sectors for Germany, its primary export market.
- In the context of politics, policy-and-legislation, and general-news, the trade dispute between the US and the EU remains a critical issue to address, particularly for Germany given the potential economic fallout, warranting further negotiation and diplomatic engagement between both nations.
