German Chancellor Friedrich Merz has expressed cautious optimism about reaching a trade agreement with the United States to resolve the ongoing tariff dispute before the end of July 2025. Since mid-June, Merz has indicated expectations for a deal before summer concludes, emphasizing the importance of a swift resolution to the trade standoff. He has maintained intensive contact with both the U.S. government, including former President Donald Trump, and the European Commission, represented by Ursula von der Leyen, to facilitate negotiations. Merz acknowledged the likelihood of an asymmetrical agreement regarding tariffs, suggesting that the terms may not be entirely reciprocal. Despite this, he remains hopeful that the deal will lower tariffs and prevent prolonged trade tensions between the U.S. and the European Union. The German government has refrained from implementing countermeasures for now but warns that the U.S. should not underestimate the EU's willingness to respond if necessary.