BERLIN: Germany’s Chancellor Friedrich Merz said Wednesday he was “cautiously optimistic” about the prospects of a deal between the European Union and the United States to avert increased tariffs threatened by President Donald Trump.
“I am cautiously optimistic that we may succeed in reaching an agreement with the United States in the next few days or at the latest by the end of the month,“ Merz told parliament.
Trump announced sweeping “reciprocal” tariffs on imports into the United States in April, but promptly suspended their implementation and incited partners to seek a deal with Washington.
The increased tariff rates were set to come into force on Wednesday after an initial 90-day pause announced by the US president. But Trump on Monday said the implementation would be pushed back to August 1.
The reprieve has given key trading partners such as the EU extra time to find an agreement with Washington to avoid higher tariffs.
Trump has threatened to hit the EU with a basic 20-percent tariff in addition to specific sectoral rates for cars, aluminium and steel already applied by the United States.
Merz said Wednesday the aim was to “reach a trade agreement with the United States as quickly as possible”.
“Intensive negotiations” between Brussels and Washington were ongoing, Merz said, adding that he was himself in direct contact with Trump on the trade issue.
Reaching a deal was however “not easy given the current demands of the American government”.
Reaching an accord was in the vital interest of key industrial sectors such as chemicals, pharmaceuticals, mechanical engineering and auto manufacturing, Merz said.
The German chancellor previously called for a “quick and simple” agreement with the United States, in contrast to the EU’s usual preference for comprehensive trade deals. – AFP
