German Chancellor Friedrich Merz has expressed cautious optimism about reaching a trade deal with the United States to resolve the ongoing tariff dispute before the end of July 2025. Since mid-June, Merz has indicated expectations of a resolution prior to the summer's end and has maintained intensive contact with both the US government and the European Commission. He emphasized the importance of a quick and straightforward solution rather than a prolonged standoff. Merz also highlighted that while the European Union is currently refraining from taking countermeasures against US tariffs, Washington should not underestimate the EU's willingness to respond if necessary. Throughout this period, Merz has engaged with US President Donald Trump and European Commission President Ursula von der Leyen to facilitate negotiations. Despite some uncertainty, the German Chancellor remains hopeful that a deal will be finalized in the coming days, aiming for the lowest possible tariffs amid current US demands.