Germany's Merz says he agreed to boost cooperation with White House on trade issues

Chancellor FriedrichMerzon Thursday said Germany, Europe’s largest economy, was ready to take over a greater leadership role on futuretradeagreements as theUnited States and theEU race to reach atradedeal before a July 9 deadline.

Merztold reportershehad a productive meeting with U.S. President Donald Trump at theWhiteHouseon Thursday, and thetwo men hadagreedto strengthencooperationontradematters and otherissues.

Merzsaidheand Trump spoke at length abouttradeand tariffsduring their meeting in theOval Office, and over anextendedlunch, whereMerzsaidhehighlighted themanufacturing facilities operated by German automakers in theUnited States.

“We will send officials to further deepen these topics. We want to reach a mutual solution,”Merztold reportersafter themeeting, noting that while theEuropean Union was responsible for settingtradepolicy, Germany had a significant role to play given thesizeof its exports.

Trump has set a July 9 deadline for the27-bloc European Union and other trading partners to reachtradedeals and avert steep tariffs. U.S. and EU officials met in Paris on Wednesday and said negotiations were constructive and advancing quickly.

Europe, already facing a 50% tariff on steel and aluminum and a 25% levy on car imports, could seeU.S. tariffsonotherexports surge from 10% to as high as 50% if no deal is reached.

U.S. tariffs were having a significant impact on German automakers,hetold CNN and Fox News in separate interviews.

“These tariffs are … something which is really threatening our economy and we are looking for ways to bring them down,”hetold Fox News. “Our conviction is that freetrade, open markets are thebest thing for themutual wealth of our countries.”

Merztold ZDF German television thathetold Trump that German automakers produced about 400,000 vehicles in theUnited States, about thesame number as in Germany, with some of those vehicles then exported back to Germany.

“There is a balance,”hesaid. “Can we not acknowledge that for every car that is imported another car is exported by thesame manufacturer and drop thetariffs?”

Merzsaidhewould also address theissue with European Commission President Ursula von der Leyen, adding that there was scope and potential momentum to reach a solution.

“If atradedispute escalates, that hurts everyone, also hurts theGerman manufacturers in America and theroughly one million families in America that are paid by German firms,”hetoldGermany’sProSiebentelevision station.

“I’m optimistic that we’ll make progress. But we’re not yet at thegoal line.”