German Chancellor Expresses Concerns Over Trade Agreement

German Chancellor Friedrich Merz has voiced strong concerns regarding the new EU-US tariff agreement, predicting significant damage to Germany's export-driven economy. Describing the deal as "asymmetric," Merz highlighted the imbalance of 15% duties on German exports compared to zero tariffs on US imports to the EU.

Economic Implications and Market Reactions

Merz warned that the agreement could not only harm Germany but also backfire on the US by increasing inflation and damaging transatlantic trade relations. The immediate market reaction saw Germany's DAX index fall more than 1%, marking it as the worst performer in Europe at the close of trading.

A Disappointing Outcome

Despite acknowledging the challenges in negotiations with the United States, Merz expressed dissatisfaction with the outcome, stating, "I can only say that, given the starting position we had with the United States of America, it was apparently not possible to achieve more."