On Thursday (June 5), German Chancellor Friedrich Merz announced that Germany, as Europe's largest economy, is prepared to assume a stronger leadership role in shaping future trade agreements. This comes as the U.S. and European Union push to finalize a deal before the July 9 deadline. Merz described his White House meeting with U.S. President Donald Trump as productive, stating that both leaders agreed to enhance cooperation on trade and other shared priorities. Their discussions, held in the Oval Office and over a working lunch, focused heavily on trade and tariffs. Merz emphasized the significant presence of German car manufacturing operations in the U.S.

"We’ll be sending officials to explore these topics further. We’re committed to finding a common path forward," Merz said, acknowledging that while the EU sets trade policy, Germany’s export power gives it a major influence. President Trump has imposed a July 9 deadline for the EU and other trade partners to finalize agreements to avoid steep new tariffs. U.S. and EU representatives met in Paris the day before and reported substantial progress in negotiations.

Europe already faces high U.S. tariffs — 50% on steel and aluminum and 25% on cars — and risks seeing further increases, potentially up to 50% on some exports, if no deal is reached. Merz, in interviews with CNN and Fox News, warned that these tariffs are significantly impacting German carmakers. “These tariffs are a real threat to our economy, and we’re actively seeking ways to reduce them,” he said on Fox News, stressing that open markets and free trade are essential for mutual prosperity.

In an interview with ZDF, Merz noted that German car companies produce around 400,000 vehicles in the U.S.—roughly equal to the number produced in Germany—some of which are even shipped back to Europe. “There’s a balance,” he said. “Can we not recognize this symmetry and eliminate the tariffs?”

Merz said he plans to discuss the issue with European Commission President Ursula von der Leyen and believes there is potential to reach an agreement. “If this trade conflict escalates, it will harm everyone, including German manufacturers operating in the U.S. and the one million American families they support,” Merz told ProSieben. “I’m optimistic we’re making headway, but we’re not at the finish line yet.”