German economy will be hard hit if US imposes 30% tariffs, Chancellor Merz says

Chancellor Friedrich Merz warned Sunday that the German economy would suffer severe consequences if US President Donald Trump proceeds with his plan to impose 30% tariffs next month.

“If that happens, we could put large parts of our economic policy efforts on the back burner. Because that would overshadow everything and would hit the German export industry hard,” he said during an interview with public broadcaster ARD.

Merz said he held talks with French President Macron and European Commission President Ursula von der Leyen over the weekend to discuss the latest developments.

He expressed hope that Europeans will be able to reach an agreement with the Trump administration before the Aug. 1 deadline.

"We want to use this time now, the two and a half weeks until August 1st, to find a solution, and I'm really committed to that," he said. "And that requires two things: unity within the European Union and reasonable lines of communication with the American President," he added.

When asked about his position on French President Macron's call for substantial European counter-tariffs, Merz responded: "Yes, but not before August 1st," noting that he had discussed this approach with both Macron and von der Leyen. He reiterated his hope that they will be able to reach a "reasonable solution" before the Aug. 1 deadline.

Following protracted trade negotiations, US President Donald Trump on Saturday threatened to impose a sweeping 30% tariff on all goods imported from the EU, effective Aug. 1.

In response, European Commission President Ursula von der Leyen stated the bloc's preference for a negotiated solution by the Aug. 1 deadline, adding that Brussels would suspend planned countermeasures till early August.

She reassured that Europe is prepared for "all eventual scenarios," but underlined: "We are not there yet. This is very important. This is now the time for negotiations."