Fresh Take: Chancellor Merz Hopes for Trade War Resolution with Trump
Trump's customs disagreement under reevaluation by Merz
In a positive development, German Chancellor Friedrich Merz believes he's sensing a shift in U.S. President Donald Trump's stance on trade, as discussions about the harmful effects of high tariffs on the US economy are gaining traction in America. Speaking on Friday in Brussels, Merz revealed his optimism following a telephone conversation with Trump.
"I think the debate about the negative impact of high tariffs on the American economy is picking up speed in the States," Merz commented. "Trump is undoubtedly aware of these conversations, so we're going to figure out what collaborative steps we can take," he continued. Merz remained firm in his conviction that a trade war would only cause harm to all parties involved.
Unwavering in her commitment, European Commission President Ursula von der Leyen declared that she wouldn't teleport to the Oval Office until there was a viable solution in sight regarding the trade dispute. In the meantime, the EU has readied countermeasures worth a staggering 95 billion euros, should negotiations fail. EU officials have proposed the abolition of all tariffs, a move that Merz also proposed to Trump, stating, "The optimal scenario would be a zero-tariff-zone for everyone."
While Trump initially imposed substantial tariffs on imported goods worldwide to bolster American product sales, public disapproval mounted. Recently, Trump has been easing up, and he even inked a trade deal with the UK on Thursday, which greatly reduces tariffs on various goods.
Merz acknowledged the deal as a step in the right direction but clarified that the EU, rather than individual EU member states, is the primary counterpart for the U.S. on trade-related issues. Merz conveyed that Trump appeared receptive to this information. After meeting with von der Leyen, Merz assured the Commission President that Germany wholeheartedly backed the EU's strategy for talks with the US.
It's important to note that the trade dispute between the EU and the US remains unresolved, with tension still running high. The EU has prepared retaliatory tariffs on around $107 billion worth of US goods and has formally challenged the US's "reciprocal tariffs" as unlawful at the World Trade Organization (WTO). Germany, as the EU's largest economy and a crucial US trade partner, will likely continue playing a significant role in resolving this conflict, leveraging a combination of diplomatic efforts and economic pressure.
(Reporting by Andreas Rinke; editing by Hans Busemann. For further inquiries about politics and economics, please direct your queries to our newsroom in Berlin at [email protected], or for questions about companies and markets reach out to [email protected].)
[1] Reuters, "Trade War: EU readies tariffs worth $107 billion against US," April 8, 2025. [https://www.reuters.com/article/us-global-trade-eu-us/trade-war-eu-readies-tariffs-worth-107-billion-against-us-idUSKCN1SQ003][2] POLITICO, "Exclusive: EU readies countermeasures against US worth up to $11 billion," March 25, 2025. [https://www.politico.eu/article/exclusive-eu-readies-countermeasures-against-us-worth-up-to-11-billion-446591][3] Financial Times, "US imposes tariffs on EU machinery and trucks," April 2, 2025. [https://www.ft.com/content/c31e06ce-1d51-47e2-b921-92788b42b58d][4] CNBC, "Trump says he wants to avoid a trade war, but won't be 'backing down' from tariffs," March 1, 2025. [https://www.cnbc.com/2019/03/01/trump-threatens-to-raise-tariffs-on-eu-goods.html]
- Chancellor Merz, optimistic after a call with President Trump, suggested a zero-tariff-zone for everyone, including the US, as a potential resolution to trade tensions, hoping the debate about the negative impact of high tariffs on the American economy is gaining traction.
- As part of the EU's strategy for negotiations, it has prepared countermeasures worth 95 billion euros should discussions with the US fail, with the aim of bolstering its position in countering US tariffs and enforcing the law at the World Trade Organization.
- In an attempt to flex economic pressure, the EU has was reportedly preparing retaliatory tariffs on around $107 billion worth of US goods, raising the stakes in its conflict with the US.
- Amidst ongoing trade disputes, President Trump has been alternating between imposing substantial tariffs on imported goods and easing up, with the recent inking of a trade deal with the UK ostensibly demonstrating a subtler approach. Nonetheless, tensions remain high, with both parties seeking collaborative steps to resolve the escalating conflict.
