Ever since President Trump started his tariff war earlier this month, the European Union’s response has been surprisingly clear. It should retaliate with tariffs of its own. It should focus on its own economic sovereignty. And it should make sure that targeted American industries feel the consequences. In other words, it should hit back, and hit back hard. And yet the incoming German chancellor Friedrich Merz has proposed a very different response: a grand Atlantic free trade pact. But can he convince Brussels to get on board?
It is certainly a break from the past for the man who next week will take over as Europe’s most significant politician. As he prepares to form his new government, the incoming German chancellor has proposed a free and open trading agreement with the United States. All the tariffs on both sides of the Atlantic would be taken down, and so would the regulatory barriers that make it harder for companies to trade across borders.
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