German Chancellor Friedrich Merz issued a stark warning on Sunday, stating that U.S. President Donald Trump’s proposed 30% tariffs on EU goods would severely damage Germany’s export-driven economy if a resolution isn’t reached soon.
“That would overshadow everything, and hit the German export industry to the core,” Merz told ARD public broadcaster, emphasizing the gravity of the situation.
The European Union announced that it would extend the suspension of its trade countermeasures against the U.S. until August 1, providing more time for negotiation. The extension comes after Trump threatened over the weekend to impose the new tariff rate on goods from the bloc.
Merz confirmed that he was working closely with EU partners to avoid the tariff escalation.
“That requires two things: unity in the European Union and good lines of communication with the American president,” the chancellor stated.
In response to a question about whether Germany supports retaliatory tariffs, Merz replied:
“Yes, but not before Aug. 1.”
He revealed he had intensive discussions over the weekend with French President Emmanuel Macron, European Commission President Ursula von der Leyen, and also held a direct call with President Trump on Friday.
Germany’s government may also have to postpone parts of its economic policy agenda if the trade tensions escalate further, Merz acknowledged, highlighting the broader economic implications of the looming tariff threat.