Merz: Would like to see EU-US trade pact in place asap
TL;DR
German Chancellor Friedrich Merz urges swift implementation of the stalled EU-US trade pact amid tariff uncertainty, emphasizing its importance for stabilizing trade relations and reducing business risks. The pact's ratification is paused pending clarity on U.S. tariff policies, with legal challenges and potential tariff hikes complicating the situation.
Tags
Merz: Would like to see EU-US trade pact in place asap
Germany’s Merz Urges Swift Implementation of EU-US Trade Pact Amid Tariff Uncertainty
German Chancellor Friedrich Merz has emphasized the urgency of finalizing the EU-US trade agreement, which has been stalled since late 2025 amid disputes over U.S. tariff policies. During his March 3, 2026, meeting with President Donald Trump in Washington, Merz sought clarity on the future of transatlantic trade, particularly following the Supreme Court's invalidation of Trump's emergency tariff powers under Section 122 of the Trade Act of 1974. The ruling has left European companies in limbo, with over 1,000 firms—including Costco and FedEx— suing for refunds on tariffs deemed "illegal" by the court.
The EU has paused ratification of the trade deal, demanding "full clarity" on Trump's next steps before proceeding. German officials stress that the pact is critical for stabilizing trade relations and reducing uncertainty for businesses. Volker Treier of Germany's DIHK industry lobby noted that "trade-policy uncertainty with the U.S. has long since become a genuine risk factor for the German economy," particularly as Trump threatens to raise tariffs to 15% on certain imports.
Merz's push for the trade agreement comes as U.S.-EU relations strain under Trump's tariffs, which have disproportionately impacted Germany's export-dependent economy. While the chancellor avoided direct criticism of U.S. military actions in Iran, he reiterated Germany's desire for "stability and predictability" in trade policy. The talks also touched on broader geopolitical concerns, including Russia's war in Ukraine, though trade remained a secondary focus amid regional tensions.
With the EU-US trade pact in limbo and legal challenges complicating refund processes for businesses, Merz's visit underscores the high stakes for European exporters. The outcome of ongoing negotiations could shape the economic landscape for years, particularly as Trump's administration weighs further tariff adjustments to address trade deficits. For now, clarity remains elusive, leaving corporate strategists and policymakers navigating a fraught transatlantic trade environment.
