Merz is urging the EU to speed up customs negotiations with the USA!

Merz is urging the EU to speed up customs negotiations with the USA!

Chancellor Friedrich Merz has called on the EU Commission to choose a different approach in the ongoing customs negotiations with the USA. Merz described the current negotiations as “much too complicated” and called for quicker and simpler decisions. South German newspaper reports that Merz is optimistic about reaching a trade deal with the USA by July 9th at the G7 summit in Canada, but not for all industries.

Merz emphasizes that the USA is interested in agreements for four to five major industries, including the automotive industry, chemicals, pharmaceuticals and mechanical engineering, which are of vital importance for Germany. The Chancellor underlined that the 90-day pause on certain tariffs granted by US President Donald Trump should be used to advance negotiations. This is particularly important as Trump's trade conflict with the EU targets tariffs on imports that the president has imposed to correct trade imbalances and shift manufacturing to the US.

The European reaction

While Merz expresses optimism, the EU is already planning steps to respond to US tariff policy. The EU is preparing special tariffs on US exports worth up to 95 billion euros, which could be imposed on various industrial and agricultural products such as cars, sweet potatoes and whiskey. ZDF today highlights that these tariffs are a response to Trump's threat of new tariffs on EU imports planned if EU offers are deemed inadequate.

The EU Commission considers the US tariffs to be unjustified and incompatible with the rules of the World Trade Organization (WTO). Ursula von der Leyen, President of the EU Commission, has stressed the EU's determination to reach negotiation results. German companies have already started looking for alternative markets, while the EU also plans to sue the US at the WTO over the tariffs.

The outlook for the negotiations

The deadline for negotiations with the US expires in July, underlining the EU's rush to find a compromise. Trade Commissioner Maros Sefcovic warns of possible further US tariffs on European goods, which could affect exports worth 170 billion euros. This corresponds to around 97 percent of EU exports to the USA. Washington is also conducting several investigations justified under the pretext of national security.

The EU has offered the Trump administration a mutual removal of all tariffs on industrial goods, but this offer has not yet been accepted. Future agreements, such as expanding American exports of liquefied natural gas (LNG) and importing military technology and agricultural goods, are seen as possible options for defusing the trade dispute.