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 summer 2025. Since mid-June, Merz has consistently indicated expectations for a deal, emphasizing ongoing close communications between Berlin and Washington. He highlighted the importance of negotiating steel export quotas to avoid high tariffs and stated that any tariff agreement must come into effect by August 7, 2025, considering any delay unacceptable. In parallel, Merz and over 60 leading German companies have launched an investment initiative worth at least €100 billion aimed at revitalizing Germany's economy amid the trade tensions. The anticipated deal seeks to address tariff barriers between the US and the European Union, with a focus on achieving the lowest possible tariffs.