German Chancellor Merz has had multiple conversations with French President Macron about this matter

German Chancellor Merz has had multiple conversations with French President Macron about this matter

German Chancellor Friedrich Merz and French President Emmanuel Macron have been in close contact regarding the EU-US trade deal, with Merz expressing optimism about securing an agreement by the end of July. The EU is currently working to avoid a 50% tariff rate and has a 10% duty on the table as of a recent deadline [1]. Merz has been in direct communication with the American government, including President Trump, to push for the lowest possible tariffs [1].

The EU is facing potential tariffs from the US, with a 25% tariff on automobiles and car parts, and a 50% tariff on steel and aluminium exports. The two sides are exploring carve-outs to mitigate the impact on specific industries. Germany, being the largest exporter to the US, is particularly vulnerable to these tariffs [1].

Macron's visit to the UK underscores the importance of EU-US relations and the need for closer ties to counterbalance the influence of the US and China. Macron called for British support in recognizing the state of Palestine and aiding Ukraine, emphasizing the need for European unity [2].

Both leaders are working to strengthen Europe's economic and political resilience, with Macron advocating for a reduction in dependence on the US and China. The visit of Macron to the UK signals an improvement in relations, with the two countries pledging to work together on various fronts, including defense, immigration, and trade [2].

The ongoing discussions between Merz and Macron are part of broader efforts to navigate the complex geopolitical landscape and secure favorable trade terms for the EU. The EU's ability to secure a favorable trade deal with the US will have significant implications for the European economy, particularly Germany's export-dependent economy.

References:
[1] https://www.euronews.com/business/2025/07/09/german-chancellor-says-hes-confident-eu-us-trade-deal-will-come-soon
[2] https://www.aljazeera.com/news/2025/7/9/frances-macron-begins-uk-state-visit-calls-for-support-on-gaza-ukraine