Germany’s chancellor: Trade talks can only be with EU, not individual nations

Germany’s newly elected Chancellor, Friedrich Merz, has reaffirmed that trade matters should be negotiated exclusively with the EU as a unified bloc, rejecting any potential side deals with individual member states.

Merz made these comments during his first visit to Brussels since taking office earlier this week, Caliber.Az reports per foreign media.

Speaking to reporters, Merz acknowledged congratulating US President Donald Trump on the successful conclusion of a trade deal with the United Kingdom, a former EU member. However, he stressed that such agreements would not be feasible with other EU countries.

“But I explained to him that this won’t be possible with other European nations that are members of the EU because we can and want to act only united on trade matters,” Merz said in a press conference with European Council President Antonio Costa.

Merz further shared that Trump appeared to understand and accept his position during their initial phone call. 

“I told him that from my point of view it’s not a good idea to escalate this trade dispute,” he added. “My strong conviction is - zero tariffs would be best.” In addition to addressing the trade dispute, Merz is scheduled to meet with key EU leaders, including European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte, in the coming days. He has committed to positioning Germany as a more active player within the EU and emphasized the importance of stronger international cooperation.

Trump has been actively targeting the EU in his broader trade reshaping efforts, offering to negotiate with major trading partners following the imposition of steep tariffs in early April. While the UK recently announced a deal with the US to reduce some of Trump’s tariffs, progress has been slow in mitigating the trade dispute within the EU. In response to the ongoing tensions, the EU is preparing to impose additional tariffs on $108 billion worth of US goods if talks with the US fail to reach a satisfactory resolution. 

The proposed retaliatory measures from the EU could target industrial goods, such as Boeing aircraft, US-made cars, and bourbon, which had previously been excluded from the tariff list. These proposals will be open to consultation with EU member states and other stakeholders until June 10, with the final list subject to potential changes.

The European Commission, tasked with handling trade matters, is set to begin negotiations with the US this week, aiming for an amicable resolution to the tariff dispute. Commission officials plan to present options to the US that include lowering trade and non-tariff barriers and enhancing investment opportunities in the US, which could eventually be formalised into concrete proposals. 

On a separate note, Merz addressed speculation around joint European borrowing to finance defence spending amidst tight national budgets.

“I won’t change the position of the German government regarding the borrowing options of the European Union, this must remain an exception,” he said.

While acknowledging that such exceptions have been made in the past, he emphasised that they should not become a permanent justification for increasing European debt. Merz also noted that discussions on joint borrowing would continue among EU member states, though divisions on the issue remain, particularly between Germany and France.

By Naila Huseynova