The Chancellor also voiced strong concern over the impact of trade tensions, warning that tariffs are inflicting "terrible" damage on Germany’s flagship auto industry. With German automakers heavily exposed to global supply chains, rising protectionism is posing a significant threat to growth and competitiveness. Merz’s comments add to mounting pressure on the EU to respond strategically to the evolving global trade landscape.
On the diplomatic front, Merz revealed that the German Chancellery and the White House have agreed to deepen their coordination on trade policy. The pledge for closer cooperation comes as both sides face common challenges from Beijing’s industrial policies and confront the broader task of maintaining a level playing field in global commerce.
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