German Chancellor Friedrich Merz called on the European Union to resolve its tariff dispute with the United States swiftly to safeguard critical industries such as cars, steel, and pharmaceuticals.

At a banking event on Thursday, German Chancellor Friedrich Merz stressed the urgency for the EU to reach a tariff agreement with the United States before the 9 July deadline, when U.S. President Donald Trump has threatened to increase tariffs by up to 50%.

Merz warned that such tariffs would severely impact key European sectors, particularly Germany's export-driven industries and noted the growing concerns over the United States’ commitment to Europe and voiced doubts about whether both sides would continue to align in the long term.

He emphasized that Europe must prepare for a potential shift in U.S. policy, stating that the EU needed to act swiftly to avoid prolonged negotiations.

Since taking office, Merz has advocated for Europe to strengthen its own capabilities to respond to external threats without relying on U.S. support. He reiterated that Europe’s determination to defend its interests should be clear, even as doubts about the long-term alignment with the U.S. persist.

EU diplomats have indicated that while Europe seeks immediate tariff relief in key sectors, any trade deal with the U.S. may still contain some level of asymmetry.

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