Germany Seeks New Trade Allies as U.S. Tariffs Hit Hard

German Chancellor Friedrich Merz called on the country to find new global trade partners during a public event in Berlin on Sunday, according to reports.

His comments come as a new U.S.-EU trade deal slaps 15% tariffs on EU goods, posing a challenge to Germany’s export-heavy economy.

Merz stressed the need to move beyond traditional trade relationships, especially with the United States, which he suggested might not stick to World Trade Organization rules.

Talking directly to people at the chancellery, Merz posed a big question: “What happens to global trade if the U.S. stops following WTO guidelines?”  He stressed the need to team up with countries that share Germany’s values, saying, "We should search for partners in the world that share our thinking."

• Germany Eyes New Trade Partners as U.S. Tariffs Threaten Export Economy
• Chancellor Friedrich Merz Pushes for Global Allies Beyond U.S. Amid Tariff Clash
• U.S.-EU Trade Deal Sparks German Push for Diversified Global Partnerships

This move is meant to soften the blow from U.S. tariffs, which Merz has warned could hit Germany’s economy hard—especially its car industry, a cornerstone of the nation’s wealth.

Merz, head of the Christian Democratic Union (CDU), didn’t stop at trade. He also called for an overhaul of Germany’s social security systems, pushing for smarter spending on jobs, pensions, and healthcare to keep them sustainable. "We have to make our social security systems fit for the future," he said, giving his team until the end of the year to sort it out.

Also Read: South Korea and Japan Team Up Before Big U.S. Meeting

The chancellor’s comments follow a July 28 deal struck between U.S. President Donald Trump and EU Commission President Ursula von der Leyen, which cut tariffs on Europe’s auto sector from 27.5% to 15%. Merz, however, wasn’t thrilled, pointing out that a no-tariff deal was off the table. With his CDU tied at 25% in polls with the far-right Alternative für Deutschland, according to INSA, Merz is feeling the heat to boost Germany’s economy. His focus on finding new trade friends shows he’s serious about keeping Germany strong in a shaky global market.