Merz cautions US-EU trade agreement risks harming Germany’s economy
German Chancellor Friedrich Merz (Photo: Getty Images)
Yesterday, the US and EU signed a trade agreement. However, the compromise in the tariff dispute will create serious problems for the German economy, states German Chancellor Friedrich Merz.
Following a cabinet security meeting, he stated that the consequences would not be limited to Germany and Europe alone.
"The German economy will suffer significant losses from these tariffs... We will see the consequences of this trade policy in America as well," the Chancellor said.
He added that this would not only lead to rising inflation but also to a general deterioration in transatlantic trade.
"I firmly believe that these tariffs are not in the interest of the United States of America," Merz said.
At the same time, he expressed gratitude to the European Commission for its tireless negotiations with the US, noting that while he is not satisfied with the final outcome, he acknowledges that achieving more was impossible.
"Personally, I didn’t expect more than this result. But once again: we cannot be satisfied with this outcome, yet it is the best that could have been achieved under the circumstances," the Federal Chancellor concluded.
US-EU trade deal
On Sunday, July 27, after several months of negotiations, the US and the EU announced they had reached a trade agreement.
According to US President Donald Trump, the deal includes a 15% tariff on most goods from the EU. While this is lower than the 30% he had previously threatened, it is still significantly higher than the levels before his tariff offensive.
In addition, the EU will increase its purchases of American liquefied natural gas, and European companies will invest in the US.
For more details on what’s known about the US-EU agreement and whether it holds any benefits for Ukraine, read the article by RBC-Ukraine.
