Germany's Merz says he agreed to boost cooperation with White House on trade issues

By Andrea Shalal and Andreas Rinke

WASHINGTON (Reuters) -Chancellor Friedrich Merz on Thursday said Germany, Europe's largest economy, was ready to take over a greater leadership role on future trade agreements as the United States and the EU race to reach a trade deal before a July 9 deadline.

Merz told reporters he had a productive meeting with U.S. President Donald Trump at the White House on Thursday, and the two men had agreed to strengthen cooperation on trade matters and other issues.

Merz said he and Trump spoke at length about trade and tariffs during their meeting in the Oval Office, and over a lunch, where Merz said he highlighted the manufacturing facilities operated by German automakers in the United States.

"We will send officials to further deepen these topics. We want to reach a mutual solution," Merz told reporters, noting that while the European Union was responsible for setting trade policy, Germany had a significant role to play given the size of its exports.

Trump has set a July 9 deadline for the 27-bloc European Union and other trading partners to reach trade deals and avert steep tariffs. U.S. and EU officials met in Paris on Wednesday and said negotiations were constructive and advancing quickly.

Europe, already facing a 50% tariff on steel and aluminium and a 25% levy on car imports, could see tariffs on its exports to the U.S. surge from 10% to as high as 50% if no deal is reached.

Merz told ZDF German television that he told Trump that German automakers produced about 400,000 vehicles in the United States, about the same number as in Germany, with some of those vehicles then exported back to Germany.

"There is a balance," he said. "Can we not acknowledge that for every car that is imported another car is exported by the same manufacturer and drop the tariffs?"

Merz said he would also address the issue with European Commission President Ursula von der Leyen, adding that there was scope and potential momentum to reach a solution.

"If a trade dispute escalates, that hurts everyone, also hurts the German manufacturers in America and the roughly one million families in America that are paid by German firms," he told Germany's ProSieben television station.

"I'm optimistic that we'll make progress. But we're not yet at the goal line."

(Reporting by Andreas Rinke and Andrea Shalal; Editing by Leslie Adler and Alistair Bell)