Germany's Chancellor Merz Optimistic on EU-US Trade Deal by July End

German Chancellor Friedrich Merz expressed cautious optimism that the European Union and the United States will finalize a trade deal by the end of July, aiming to reduce tariffs on mutual trade. Merz emphasized the importance of EU unity in negotiations, highlighting the significant impact of U.S. tariffs, including a 25% duty on automobiles and 50% on steel and aluminum, on Germany’s export-driven economy. Despite President Trump's threat of higher tariffs, current proposals suggest a 10% baseline tariff on EU goods with exceptions for sensitive sectors such as aircraft and spirits. Merz is maintaining close communication with President Trump and the European Commission to expedite the agreement, which is seen as critical for jobs and prosperity in Germany. Trump has postponed the reinstatement of broader tariffs to August 1, signaling a window for the deal to be completed. While some tariffs may remain, the deal could include concessions to mitigate economic harm and facilitate continued trade between the US and EU.