Germany's Merz says he did not expect better EU-US trade deal, German economy will suffer
An assembly line at the Volkswagen factory in Zwickau, Germany. Cars are a cornerstone of the German economy.
BERLIN - German Chancellor Friedrich Merz said on July 28 he was not satisfied with the result of trade talks with the United States, but 'more simply wasn't achievable' and added the German economy would suffer 'significant' damage due to the agreed tariffs.
The trade deal announced on July 27
imposes a 15 per cent import tariff on most EU goods - lower than the 30 per cent once threatened by US President Donald Trump but well above initial hopes of a zero-for-zero agreement.
The rate almost halves the existing tariff rate on Europe's auto sector, a cornerstone of the German economy, from 27.5 per cent, Mr Merz pointed out.
'But I am fully aware that the tariffs that remain – particularly the 15 per cent versus 0 per cent for imports into the EU – pose a serious burden for Germany's export-oriented economy,' he told a press conference in Berlin.
'I am not satisfied with this result in the sense of: 'This is good.' But I do say that, given the starting point we had with the United States, more simply wasn't achievable,' he said.
The German Chancellor thanked the European Commission for its 'tireless negotiations' with its US counterparts, with involvement in particular of the German, French, and Italian governments.
'I personally did not expect more than this result,' he said. REUTERS
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