Published by Global Banking & Finance Review®
Posted on June 26, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleChancellor Merz calls for a quick EU-US trade deal to ease tariffs on German industries. Time is crucial as the tariff respite ends July 9.
BRUSSELS (Reuters) -German Chancellor Friedrich Merz said on Thursday the EU should do a "quick and simple" trade deal with the United States rather than a "slow and complicated" one.
Merz spoke at the end of a summit of EU leaders in Brussels, where European Commission President Ursula von der Leyen said the EU had received a new proposal from U.S. President Donald Trump's administration in their transatlantic trade dispute.
With the clock ticking before a tariff respite expires on July 9, Merz said time was of the essence.
"We have less than two weeks until July 9 and you can't agree a sophisticated trade agreement in that time," he told reporters.
Merz said German industries such as chemicals, pharmaceuticals, mechanical engineering, steel, aluminum and cars were already being burdened with high tariffs that businesses were in danger.
Merz also said von der Leyen had suggested that Europeans build a new trade organisation that could gradually replace the World Trade Organization (WTO), which has struggled to function effectively in recent years.
He said the idea was in its early stages but could include mechanisms to resolve disputes, as the WTO was meant to do.
"You all know that the WTO doesn't work any more," he said.
Also on trade, Merz said EU leaders were "basically united" in wanting to finalise a trade deal with Latin America's Mercosur bloc as soon as possible. He said there were only "small differences" between EU members on the pact.
Asked about objections from France to the current proposal, Merz said he had spoken twice to French President Emmanuel Macron about the topic twice during the summit and felt there was "great readiness" to conclude the deal.
Macron, however, struck a different note, telling reporters France could not accept the deal as it stands.
(Reporting by Andrew Gray and Andreas Rinke, writing by Julia Payne and Andrew Gray, editing by Richard Lough)
Merz urged that the EU should pursue a 'quick and simple' trade deal with the United States instead of a 'slow and complicated' one.
Merz highlighted that there is less than two weeks until the tariff respite expires on July 9, emphasizing the urgency of reaching an agreement.
He pointed out that German industries such as chemicals, pharmaceuticals, mechanical engineering, steel, aluminum, and cars are burdened with high tariffs.
Von der Leyen suggested that Europeans could build a new trade organization to gradually replace the World Trade Organization (WTO).
Macron indicated that France could not accept the deal as it stands, despite Merz's assertion of a united front among EU leaders.
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