German Chancellor Friedrich Merz has urged the European Union to pursue a "quick and simple" trade agreement with the United States, warning that time is running out before a July 9 tariff truce expires. Speaking at the EU leaders summit in Brussels, Merz emphasized the urgency of avoiding further economic strain, especially on key German sectors like chemicals, pharmaceuticals, mechanical engineering, steel, aluminum, and automotive industries.
Merz’s comments come as the European Commission, led by Ursula von der Leyen, confirmed receipt of a new proposal from the Trump administration aimed at resolving the ongoing transatlantic trade dispute. Merz argued that negotiating a comprehensive agreement would be unrealistic within such a short timeframe and called for a streamlined approach to avoid additional trade penalties.
He also revealed that von der Leyen proposed a new European-led trade organization to eventually replace the World Trade Organization (WTO), citing the WTO’s diminishing effectiveness in resolving global trade disputes. While details remain in early stages, Merz suggested it could incorporate new dispute resolution mechanisms to improve global trade governance.
Additionally, Merz addressed the stalled EU-Mercosur trade deal, stating that most EU leaders are aligned in their desire to finalize the agreement with Latin America's trade bloc. He acknowledged minor differences among member states but downplayed their impact. Merz said he spoke with French President Emmanuel Macron twice during the summit and sensed a “great readiness” to reach a resolution.
However, Macron later expressed reservations, saying France could not accept the deal in its current form, highlighting ongoing internal EU negotiations.
With trade tensions escalating and critical deadlines looming, EU leaders face mounting pressure to secure agreements that protect European industries and global trade stability.