Tariffs and conflicts loom large over Merz and Macron's working dinner

BERLIN (Reuters) -German Chancellor Friedrich Merz will host French President Emmanuel Macron for talks over dinner in Berlin on Wednesday, with Europe's battle to soften incoming U.S. tariffs and support for Ukraine expected to top a packed agenda.

The meeting, taking place at Villa Borsig in the German capital's leafy outskirts, brings together the leaders of Europe's two largest economies as trade negotiations approach President Donald Trump's August 1 deadline.

"Of course, the question of how we react to the threat of tariffs on August 1 is a central focus, and also the security situation in Ukraine," Merz's chief of staff, Thorsten Frei, told the ZDF broadcaster.

"The fact that the agenda is so full shows that the relationship between Germany and France is not only good but extremely important," Frei said, adding that a number of other topics would be discussed.

Conservative Merz has courted a more unified front with France on a range of issues, from European defence to diplomacy with Iran, and criticised his predecessor Olaf Scholz for neglecting Germany's relations with its neighbour.

However, sticking points remain.

Germany's signature was missing from a letter signed by France and 27 other Western countries calling on Israel to immediately end the war.

Merz has been increasingly critical of Israel but his chief of staff said the letter was not clear enough that Hamas's October 7, 2023 attacks had triggered the conflict.

Merz and Macron are also expected to discuss the FCAS Franco-German-Spanish fighter jet project, whose future has been called into question amid a growing feud with Europe's Airbus over control of the program.

(Reporting by Rachel MoreEditing by Alexandra Hudson)