German Chancellor-Elect Merz Warns of Financial Crisis Risk Amid Trump’s Tariff Policy

In a bold assertion, German Chancellor-elect Merz has highlighted the dangers posed by former President Trump’s tariff policies, which he claims elevate the likelihood of a potential financial crisis. Merz is advocating for a comprehensive US-EU free trade agreement, emphasizing the mutual benefits of establishing zero tariffs across all sectors. He remarked, “A transatlantic trade accord imposing zero tariffs is advantageous for both parties.” In a corresponding move, the EU has introduced a “zero-for-zero” tariff proposal aimed at US industrial goods, although Trump has criticized this as inadequate. He argues that Europe should mitigate tariffs by increasing imports of US energy. Merz cautioned that a US retreat from global trade could compel European nations to seek alternative markets. He stated, “The current direction of Trump’s policies could accelerate the onset of a financial crisis. Europe must devise effective countermeasures.” (FXStreet)