Merz Advocates for New US-EU Free Trade Talks

German conservative leader Friedrich Merz advocates for renewed free trade talks with the U.S. amid challenging trade conditions under President-elect Trump. Merz promotes a positive agenda for U.S.-Europe relations to prevent tariff spirals and enhance competitiveness by lowering corporate taxes and addressing labor costs.

German conservative leader Friedrich Merz has expressed his support for reigniting discussions on a free trade agreement with the United States. Merz, who is considered a potential successor to Olaf Scholz as chancellor, told the German news agency dpa that such negotiations are crucial in response to the increasingly difficult trade environment.

Merz emphasized the importance of developing a positive agenda between the U.S. and Europe, beneficial to both American and European consumers. He suggested that a new initiative for a free trade deal could serve as a countermeasure against a potential tariffs escalation, as anticipated under U.S. President-elect Donald Trump's administration.

With Trump's prior cessation of trade talks between the EU and the U.S., and his promise to impose high tariffs on EU products, Germany's economic future seems vulnerable. Merz proposes reducing Germany's corporate taxes and addressing non-wage labor costs to enhance its business attractiveness, preparing for impending competition with the U.S.

(With inputs from agencies.)