Germany's Merz praises EU-US trade deal despite industry backlash
The agreement, which imposes 15-percent tariffs on most EU exports, has drawn mixed reactions, with industries expressing concerns over its economic impact.
Merz stated, 'We have thus managed to preserve our fundamental interests, even if I would have wished for more relief in transatlantic trade.'
The deal notably reduces tariffs for Germany's automotive sector from 27.5 percent, providing relief to one of the country's key industries.
However, Germany's industrial and business groups have voiced strong opposition. The BDI federation warned of 'considerable negative repercussions,' calling the agreement a 'fatal signal' for transatlantic economic relations.
The chemical trade association VCI described the tariffs as 'too high,' while the BGA exporters association labelled it a 'painful compromise' that poses an 'existential threat' to businesses.
Economist Clemens Faust of the IFO institute criticised the deal as a 'humiliation for the EU,' highlighting the perceived power imbalance in negotiations.
Despite these concerns, Merz pledged full support for the European Commission in finalising the agreement's details.
Finance Minister Lars Klingbeil cautiously endorsed the deal as a 'good first step,' adding that its economic and employment effects would be closely monitored. - Reuters
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