Merz is under enormous pressure from German industry, particularly from automakers, to push the EU to seal a rapid deal as its export-oriented economy is behing hit hard by Trump’s sectoral tariffs. The U.S. currently levies 25 percent tariffs on cars and 50 percent on steel and aluminum.
“There is a lot at stake here,” said Merz. “Jobs are at stake here. The prosperity of our country is also at stake here.”
While pushing the EU to act quickly, Merz also said Germany would “achieve nothing” if it were to act on its own, underscoring the need for unity among the the bloc’s 27 member states.
Two officials told POLITICO earlier this week that the U.S. has offered an agreement to the EU that would keep a 10 percent baseline tariff on all EU goods, with some exceptions for sensitive sectors such as aircraft and spirits.
Trump said on Tuesday he could be two days away from sending a letter to the European Union indicating that it has a trade deal with the United States. He has, however, pushed back a deadline for a return of more sweeping tariffs to Aug. 1 should no agreement be reached.
