Germany's incoming Chancellor Merz issued a stern warning on April 13 regarding Trump's trade policy, stating that protective tariff measures are raising systemic risks in the global economy. He called for the resumption of transatlantic free trade negotiations to achieve "comprehensive zero tariffs" to safeguard the common interests of the US and Europe.
The current trade game between the US and Europe has reached a stalemate: the EU proposed a scheme for equivalent concessions on industrial products, but Trump countered with a demand for "energy purchases to replace tariffs." Merz emphasized that if the US continues its tendency to withdraw, Europe will accelerate its strategic shift and deepen its economic ties with non-US markets.
"Trump-style trade protectionism is overdrawing the resilience of the global economy." Merz pointed out that this neighbor-at-the-expense-of-others policy thinking not only undermines the multilateral trading system but also creates systemic risks. He urged European decision-makers to quickly establish a countermeasure framework to prevent potential crises from evolving into widespread financial turmoil.
