Germany's Merz urges quick US tariff deal with deadline days away

By Andreas Rinke and Matthias Williams

BERLIN (Reuters) -German Chancellor Friedrich Merz urged the European Union on Thursday to settle a tariff dispute with the United States as quickly as possible to protect core industries such as cars, steel and pharmaceuticals.

Speaking at a banking event, Merz said Europe had to face the prospect of the United States weakening its commitment to Europe and that there were justified doubts over whether the two sides would continue to share common interests in the long term.

Merz's comments underscore the urgency for a tariff deal before a July 9 deadline, when U.S. President Donald Trump has threatened to raise tariffs to as much as 50%, hammering European companies including in Germany, an export powerhouse.

"We will, I will, do everything to keep the United States of America on our side. But we must also prepare ourselves for the fact that at least America's commitment to Europe and in Europe will diminish," Merz said.

"A quick result must be reached. Better quick and simple than lengthy and complicated, and still under negotiation for months," he added.

Since becoming chancellor this year, Merz has pushed for Europe to build up its own ability to counter external threats without having to rely on Washington.

"And no one should have the slightest doubt about our determination," Merz said.

"Even if doubts grow, for example, as to whether we share common interests with the United States of America in the long term. Yes, the doubts are there, and they may even be justified."

The EU wants immediate relief from tariffs in key sectors as part of any trade deal with the U.S., but the bloc expects even a best-case deal to include a degree of asymmetry, EU diplomats told Reuters this week.

(Reporting by Andreas Rinke and Matthias WilliamsEditing by Madeline Chambers and Kate Mayberry)