Berlin, 28 July 2025 (dpa/MIA) - German Chancellor Friedrich Merz has warned that the compromise reached in the tariff dispute between the European Union and the United States will severely impact Germany's export-oriented economy.

"The German economy will suffer significant damage from these tariffs," Merz said on Monday following a meeting of the Security Cabinet in Berlin.

However, he said, the effects will not be limited to Germany and Europe. "We will also see the consequences of this trade policy in America."

There will not only be higher inflation but also an overall disruption to trans-Atlantic trade, the chancellor added.

"These tariffs are, in my firm conviction, not in the interest of the United States of America either." Time will prove this, he said.

Merz: Nothing more could be achieved

Under the agreement, the US will impose a 15% tariff on most imports from the EU. This will also apply to cars, semiconductors and pharmaceutical products. For certain goods, such as aluminium and steel, tariffs will remain at 50%.

"I am not satisfied with this result in the sense of 'this is good now'," Merz emphasized. However, "nothing more could evidently be achieved," he said.

Merz explicitly thanked the European Commission for its tireless negotiations with the US government. "Personally, I did not expect more than this result. But once again: this result cannot satisfy us, although it was the best that could be achieved under the given circumstances."

Photo: dpa