EU fears collapse of trade deal with US due to Trump-Merz conflict - Bloomberg

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Trump's anger at Merz over criticism of the war in Iran is stalling the trade deal with the EU. The US could impose 25% tariffs on cars as early as July 4.

The conflict between United States President Donald Trump and German Chancellor Friedrich Merz is complicating the European Union's efforts to finalize a trade deal with the US before new tariffs are imposed. This was reported by Bloomberg, according to UNN.

Details

It is noted that on Thursday, Trump was unwilling to postpone the promised 25% tariff on European cars and trucks, as he remains incensed with the German Chancellor over his criticism regarding the war in Iran.

This is causing concern among high-ranking European officials that they will not conclude a trade deal by Trump's new deadline of July 4, which could trigger a downward spiral

- the publication quotes an unnamed person familiar with the matter.

It is pointed out that while officials express confidence they can complete their work by then, this timeframe also leaves nearly two months for Trump's personal grievances to resurface.

This situation serves as another reminder that for Trump, all political issues are interconnected and personal. Practically speaking, Trump's anger at Merz has nothing to do with the US-EU trade deal. But in Trump's world, it is all connected

- the article states.

The authors recall that both sides have currently reached an uneasy detente.

"On Thursday, Trump backed away from his promise last week to imminently introduce increased auto tariffs for Europe after a conversation with European Commission President Ursula von der Leyen. ... This move was typical for Trump: issuing an ultimatum before ultimately shifting his deadlines," the media outlet summarizes.

Context

In early May, US President Donald Trump announced that he was raising tariffs on cars from the European Union to 25%.

Shortly thereafter, Germany advocated for finding a common solution with the US to reduce trade tensions following Trump's statements.

Subsequently, the head of the White House gave the European Union until July 4 to finalize a trade deal, or else he would impose "much higher" tariffs.

European Parliament calls Trump's new car tariffs unacceptable01.05.26, 20:34

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