Merz Welcomes EU-US Tariff Agreement

German Chancellor Friedrich Merz has welcomed the agreement between the EU and the US on tariffs, stressing that an escalation of the trade dispute that would have hit the German economy has been averted.

Merz hailed the agreement reached between Ursula von der Leyen and Donald Trump, noting that EU unity and the hard work of negotiators had paid off. He thanked von der Leyen, Trade Commissioner Maroš Šefčovič, and their teams for their efforts.

Chancellor Merz emphasized that this agreement averted a trade conflict that would have hit the German economy hard, especially the automotive industry, where tariffs will be reduced from 27.5% to 15%. He argued that Europe had managed to safeguard its interests.

The German Trade Association (BGA) warned of "noticeable consequences" for Germany, calling the agreement a "painful compromise" that would cost growth and jobs.

The head of the Ifo Institute for Economic Research in Munich, Clemens Fuest, described the agreement as a "humiliation" for Europe but acknowledged that it reflects the balance of power.