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How Will Merz Handle Trump’s Trade and NATO Demands?

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On Thursday, June 5, 2025, new German Chancellor Friedrich Merz will meet U.S. President Donald Trump at the White House, marking their first formal encounter since Merz took office on May 6, 2025. As announced by German government spokesman Stefan Kornelius, the visit includes a meeting, a joint lunch, and a press event, with Merz staying at the prestigious Blair House—a rare honor. With only a brief meeting years ago in New York, this summit is a critical opportunity for Merz to establish rapport with Trump. The agenda is expected to tackle pressing issues like the transatlantic trade dispute, the EU’s stance on the Ukraine war, NATO’s response to global threats, and broader U.S.-Germany relations.

Will Merz Defuse the Escalating Transatlantic Trade War?

How Will Trump’s Tariff Hike Impact Germany?

A key focus of the Merz-Trump meeting is the intensifying U.S.-EU trade dispute, sparked by Trump’s announcement to double steel and aluminum tariffs from 25% to 50%, effective June 4, 2025. Unveiled during a speech to Pennsylvania steel workers, this move aims to protect U.S. industry but has raised alarms in Germany. Kerstin Maria Rippel, head of the German Steel Federation, warned that the 50% tariff is a “massive burden” for Germany’s crisis-hit steel sector. Direct exports to the U.S. face immediate losses, but Rippel highlighted a graver indirect effect: traditional suppliers, blocked from the U.S. market, may flood the EU with cheap steel, worsening import pressures. She noted that one-third of EU steel is already imported, including three to four million tons annually from Russia, complicating the trade landscape.

Can Merz Push for Tariff-Free Trade?

Merz has advocated for de-escalating trade tensions, proposing a tariff-free transatlantic trade zone. In a May 2025 phone call with Trump, he pushed a “down to zero” tariff strategy to benefit both economies. At the WDR Europaforum on May 26, 2025, Merz warned that the EU could retaliate with tariffs on U.S. tech firms or other sectors if tensions escalate. His approach, balancing tough trade defense with “smart negotiations” as Rippel urged, will likely dominate the talks. Merz may seek exemptions or phased tariff implementations to protect German manufacturers while aligning EU and U.S. trade policies to avoid a broader trade war. X posts reflect optimism about Merz’s zero-tariff proposal, with one user noting its potential to unify EU and U.S. economic interests.

What Are the Economic Stakes for Germany and the EU?

Germany’s export-driven economy faces significant risks from the tariff hike. The German Steel Federation warns that increased imports could destabilize the EU market, already strained by global competition. Merz’s agenda will likely prioritize mitigating these impacts, possibly by negotiating trade concessions or joint economic initiatives. A successful outcome could prevent supply chain disruptions and rising consumer costs, but failure risks a deeper transatlantic rift.

How Will Merz Address the Ukraine War with Trump?

Is Germany’s Support for Ukraine Unwavering?

The Ukraine war, now in its third year, is a critical agenda item. Merz has positioned Germany as a leading supporter of Ukraine, outpacing his predecessor Olaf Scholz’s cautious approach. On May 28, 2025, Merz hosted Ukrainian President Volodymyr Zelenskyy in Berlin, announcing a €5 billion aid package and a groundbreaking deal to co-develop long-range missiles with Ukraine, unrestricted by range limits. This contrasts with Scholz’s hesitation to supply Taurus missiles, fearing escalation. Merz’s assertive stance, including endorsing Ukraine’s strikes on Russian territory, has drawn Russian criticism, with Foreign Minister Sergei Lavrov accusing Germany of direct involvement.

Can Merz Secure U.S. Commitment to Ukraine?

Merz’s meeting with Trump will likely focus on sustaining Western support for Ukraine, especially as Trump has signaled reluctance to maintain U.S. aid. Recent reports highlight Trump’s frustration with Russia’s intensified attacks, including massive drone and missile strikes in late May 2025, and President Vladimir Putin’s resistance to peace talks. Merz, who called these attacks “a slap in the face” to ceasefire efforts, may press Trump to continue or expand U.S. military and financial support, emphasizing Germany’s role as the second-largest donor after the U.S. The joint missile project could be a leverage point, potentially involving NATO or technology-sharing to align U.S. interests.

Will Merz Push for Peace Talks?

Merz supports a balanced approach, combining military aid with diplomatic efforts for a ceasefire. He has endorsed Zelenskyy’s proposed trilateral meeting with Trump and Putin to advance peace negotiations, though he remains cautious about prospects, noting on May 27, 2025, that Russia’s actions hinder progress. The meeting with Trump offers a chance to align U.S. and EU strategies, possibly exploring a coordinated push for diplomacy while ensuring Ukraine’s defense capabilities.

Can Merz Strengthen NATO’s Role with Trump?

How Will NATO Address Global Threats?

NATO’s response to external threats, particularly from Russia, will be a key discussion point. Under Merz, Germany has met NATO’s 2% GDP defense spending target, signaling commitment to the alliance. Merz may seek to reinforce NATO’s unity, countering Trump’s past criticisms of members’ financial contributions. The Ukraine war underscores NATO’s importance, and Merz will likely advocate for enhanced military presence in Eastern Europe and coordinated strategies to deter Russian aggression.

What About Middle East Stability?

The Gaza conflict and broader Middle East tensions are also expected to arise. Merz has balanced Germany’s support for Israel with criticism of its military tactics, urging restraint. This aligns partially with Trump’s selective engagement in global conflicts, and Merz may propose joint U.S.-EU initiatives, such as humanitarian aid or mediation, to stabilize the region. Aligning transatlantic priorities could strengthen NATO’s global role.

Will Merz and Trump Build a Strong Rapport?

Why Does Personal Diplomacy Matter?

Establishing a good rapport is a top priority for Merz, given their limited prior contact—a brief New York encounter years ago. The Blair House invitation and joint events signal Trump’s intent to foster goodwill. Merz’s conservative, business-friendly policies may resonate with Trump’s economic focus, easing tensions over trade and security. However, past friction, including Merz’s criticism of alleged U.S. interference in German elections, could complicate their dynamic. X posts highlight mixed sentiments, with some noting Merz’s surprise at finding common ground with Trump, while others point to tensions over Trump’s perceived indifference to Europe’s fate.

Can Merz Navigate Trump’s Style?

Merz’s pragmatic, corporate-lawyer background contrasts with Trump’s transactional diplomacy. His leadership of the Christian Democratic Union (CDU) equips him to negotiate firmly, but he must adapt to Trump’s unpredictable style. The meeting’s success hinges on Merz’s ability to align Germany’s interests with Trump’s priorities, setting a constructive tone for future cooperation.

How Will Merz Shape EU-U.S. Relations?

Can Merz Strengthen EU Unity?

Merz’s leadership comes at a critical juncture for EU-U.S. relations, strained by trade disputes and differing global priorities. His recent coordination with French President Emmanuel Macron and British Prime Minister Keir Starmer in Tirana underscores his commitment to EU unity. In Washington, Merz will likely advocate for a cohesive EU stance, particularly on trade and Ukraine, while proposing joint initiatives like technology partnerships or energy cooperation to bolster transatlantic ties.

Is Germany Reasserting EU Leadership?

As chancellor of Europe’s largest economy, Merz aims to reassert Germany’s leadership within the EU. His proactive diplomacy, from hosting Zelenskyy to engaging European leaders, positions Germany as a key player. By securing Trump’s support on trade, Ukraine, and NATO, Merz can strengthen Germany’s influence in shaping EU policies, particularly on security and economic stability.

Merz faces a complex agenda

What will define the Merz-Trump meeting on June 5, 2025? From tackling the trade war sparked by Trump’s 50% tariffs to ensuring U.S. support for Ukraine, Merz faces a complex agenda. Can he defuse economic tensions, strengthen NATO, and build rapport with Trump? By balancing diplomacy and assertiveness, Merz aims to protect Germany’s interests while reinforcing EU-U.S. cooperation. The outcomes of this summit could reshape transatlantic relations, making it a pivotal moment for global stability.

Wasim Qadri
Wasim Qadrihttp://wasimqadriblog.wordpress.com/
Waseem Shahzad Qadri, Islamabad based Senior Journalist, TV Show Host, Media Trainer, can be follow on twitter @jaranwaliya

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