Trump receives first call from Merz, advocating complete elimination of all tariffs.
German Chancellor Friedrich Merz Plans to Eliminate Tariffs with the USA, Advocates for Cooperation in Tech Standards
Friedrich Merz, the newly elected German Chancellor, is pushing for the abolition of all tariffs between the United States and the European Union (EU). In his initial conversation with U.S. President Donald Trump, Merz underscored the importance of the bilateral trade policy between the two nations.
"I suggested that, in my opinion, it's not wise to fan the flames of this trade spat. The optimal solution would be for everyone to have nothing and zero tariffs.", stated Merz during his inaugural visit to the EU in Brussels. Trump extended an invitation to Merz to meet in Washington, where they'll deliberate on this matter further.
From Merz's perspective, the USA and the EU should also engage in discussions about technological standards. He believes mutual recognition of technological standards is as crucial as the question of the size of tariffs, and he reiterated his stance: "I firmly believe: zero is the way to go."
Merz conveyed that Trump understands the negative implications of excessive tariffs on the national economy and is aware of a growing sentiment against high tariffs in the U.S. as well.
The discourse between the USA and the EU revolves around the elimination of mutual tariffs and the mutual acknowledgment of technological standards to smooth transatlantic commerce. The U.S. had previously imposed tariffs of 25% on EU aluminum and steel, 25% on automobiles, and a 10% tariff on all EU imports, escalating tension [1][3].
In response, the EU is preparing countermeasures worth around €95 billion on US products, including aerospace goods, agricultural items, industrial products, and beverages like Bourbon Whiskey [1][3]. If negotiations fail, the EU is ready to implement these countermeasures, increasing economic tension and potentially causing harm to industries on both sides.
The EU and U.S. could experience disruptions in supply chains, especially for industries dependent on mutual recognition of standards, which remains a critical unresolved issue. The overall result of failed negotiations could be a setback in broader bilateral cooperation, with negative spillovers for global trade dynamics.
[1] - victoryinstitute.org[2] - thegradient.io[3] - reuters.com
What is Ursula's policy-and-legislation response to Merz's calls for tariff elimination with the USA?
Given Merz's advocacy for mutual recognition of tech standards and zero tariffs, is it likely that the proposed discussions between the USA and the EU will be compatible?
Amidst the escalating political tensions related to the tariffs, Merz's efforts to smooth transatlantic commerce may face significant obstacles in the general news and politics landscape.
In light of Trump's agreement to meet with Merz to discuss the tariffs and technology standards, what specific concessions can we expect to see, if any, on the U.S. side?
