German Chancellor Friedrich Merz said Berlin must look beyond the United States for future growth after a new EU–US trade accord left a 15% tariff on European goods. Speaking at a government open-house event in Berlin on 24 August, Merz questioned Washington’s commitment to World Trade Organization rules and argued that Germany should identify “partners who share our view” in Asia, South America and Africa within the next few years. The Chancellor added that the country’s welfare state is “no longer financeable” under current economic conditions, signalling that his administration will present proposals to rein in pension and health-care spending before year-end. “We have to adapt our social-security system to the future,” he said. Merz’s call for diversification contrasts with European Commission President Ursula von der Leyen, who in newspaper articles and television interviews defended the trans-Atlantic pact as a “solid, if not perfect” arrangement that provides stability for exporters and the euro amid rising global protectionism. The agreement, struck last month, averted the threat of steeper duties but still leaves European manufacturers paying a double-digit levy on shipments to the United States. Lawmakers and industry groups warn the surcharge could erode competitiveness in sectors ranging from machinery to autos. Analysts say Merz’s remarks revive debates over Europe’s “strategic autonomy” and may accelerate efforts by the EU’s largest exporter to finalise new trade pacts with fast-growing economies while recalibrating relations with Washington ahead of a formal review of Germany’s trade strategy later this year.
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