German Chancellor-designate: Trump tariffs increase risk of financial crisis

German Chancellor-elect Merz said that Trump's tariff policy has increased the risk of financial crisis and advocated for a US-EU free trade agreement. He said: "I hope to reach a new transatlantic free trade agreement that imposes zero tariffs on everything, which is good for both sides." The EU has proposed reciprocal zero tariffs on US industrial products. Trump told reporters on Monday that this proposal is not enough, and he suggested that Europe should offset tariffs by purchasing US energy. Merz said that if the US decides to completely withdraw from global trade, Europe will have to focus on non-US markets. Merz said: "Trump's policy is increasing the risk of the next financial crisis coming early. We Europeans need to come up with convincing countermeasures."