[Text/Observer Network Chen Sijia] The Christian Democratic Union and the Social Democratic Party of Germany have recently reached an agreement on the coalition agreement, and Merkel, leader of the CDU, is expected to officially take office as German Chancellor in early May. On April 12 local time, the German "Handelsblatt" published an interview article with Merkel, in which he talked about the "tariff war" initiated by US President Trump. Merkel believed that the market turmoil caused by tariffs increased the risk of a financial crisis occurring earlier.

Merkel warned that Trump's government tariff policy increased the risk of a financial crisis, "I always say: the next financial crisis will definitely come, we just don't know when and why. President Trump's policies increase the risk of the next financial crisis coming earlier than expected. We Europeans need to get a convincing answer."

Merkel said that the foundation of globalization has been shaken, which has hit Germany harder than any other country.

Trump asked Europe to import more energy from the United States and reduce the $35 billion trade deficit with the EU to reach an agreement. In response, Merkel said: "We will do such business if it serves common interests, not under pressure. "Merkel emphasized that services are also part of trade, and if they are included, "the deficit is not so big."

He hopes that the EU and the United States can reach a transatlantic trade agreement with zero tariffs, "Looking ahead, free trade remains necessary and is the foundation of our common prosperity. I hope for a new transatlantic trade agreement with zero tariffs on all goods, which benefits both sides."

Screenshot of incoming German Chancellor Merkel

But Merkel emphasized that although Germany is an importer of primary energy and needs natural gas from countries like the United States, Germany still needs to avoid excessive dependence on a single supplier. He believes that Germany should seek multiple suppliers and import natural gas from all over the world.

Merkel told the "Handelsblatt" that he has not yet determined the date of his visit to the United States, and he will coordinate with European partners before his trip to send a "united voice of the EU" to Trump.

When asked what message the EU should convey to the United States, Merkel replied: "The most important message is: Europe is a political entity that is able and prepared to act, representing its own interests and values. This is the only way we can gain respect. The second message is that we want to build a good and strong transatlantic relationship."

Merkel believes that the United States will not turn to "self-sufficiency" and withdraw from all markets. "If this eventually happens, we must remember that the world is not just the United States. Europe has more people and consumers than the United States. Among the nearly 8 billion people globally, only 340 million live in the United States, while about 7.6 billion live outside the United States. We must engage more actively with other parts of the world than ever before, proposing cooperation and new free trade agreements."

On April 9 local time, after six weeks of consultations and negotiations, the German Union Party, composed of the Christian Democratic Union and the Christian Social Union, and the Social Democratic Party reached an agreement on the joint government agreement, paving the way for the formation of the new coalition government. Merkel is expected to take office as German Chancellor in early May.

The "Handelsblatt" said that because Merkel cooperated with the Alternative for Germany party on a motion about deporting immigrants, many members of the Social Democratic Party did not support Merkel. His fiscal reform proposal to relax the "debt brake" mechanism also caused dissatisfaction among some members of the Christian Democratic Union. Therefore, to ensure the approval of the joint government agreement, the Union Party and the Social Democratic Party must first secure enough support within their respective parties.

Last week, US President Trump signed two executive orders on so-called "reciprocal tariffs," one of which imposed a 20% tax on the EU. Previously, the US had imposed a 25% tariff on all steel and aluminum. This move triggered global anger and panic and was unanimously criticized by the international community.

After causing a massive upheaval in global stock markets and making the US the target of public criticism, Trump decided on April 9 to suspend the "reciprocal tariffs" on imports from certain countries for 90 days, while retaining a 10% "benchmark tariff" during this period.

The EU's 27 member states voted on April 9 to approve countermeasures imposing a 25% tariff on $21 billion worth of US imports in response to the US steel tariffs. However, after the Trump administration announced the suspension of tariffs, the EU quickly agreed to postpone the original countermeasures against US tariffs scheduled for April 15.

The EU has not yet responded to the Trump administration's "reciprocal tariff" policy. However, EU Commission President von der Leyen previously stated that the EU Commission would use "all available tools" for countermeasures if necessary, including a counter-coercion tool (ACI) launched in 2023 but never triggered, to strike back at US technology and banking sectors.

On April 11 local time, at the informal meeting of EU finance ministers and central bank governors, EU finance ministers and central bank governors reached a consensus, believing that the EU needs to adopt dual-track approaches of trade defense measures and diplomatic mediation to maintain coordinated responses. EU Commissioner for Trade Dombrovskis believes that tariffs will harm economic growth on both sides of the Atlantic. The EU postponed the initial countermeasures to promote negotiations, but retained all options. If negotiations fail, countermeasures will take effect immediately.

This article is an exclusive article of Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7492645503914836516/

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