Merz Challenges Trump Over Tariff Threat and Afghanistan Comments

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(Bloomberg) — German Chancellor Friedrich Merz pushed back against Donald Trump on multiple fronts, signaling that Europe won’t bow to the US president’s intimidation while reiterating a commitment to preserving the transatlantic alliance.

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In an address to parliament Thursday, Merz said the European Union’s resistance this month to Trump’s threat to slap new tariffs on nations opposing his designs on Greenland was evidence of the bloc’s “unity and determination.”

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Trump should know that Europe stands ready to defend itself “if necessary,” he told Bundestag lawmakers in Berlin. He also criticized the US leader for downplaying the role of NATO troops in Afghanistan, saying he wouldn’t allow Germany’s mission there, during which around 60 personnel lost their lives, “to be disparaged and denigrated.”

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Conservative leader Merz and his Social Democrat partners are trying to adapt their policies — particularly in areas like trade, economic competitiveness and defense — to cope with a rapidly changing geopolitical environment.

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Trump’s return to the presidency and his aggressive drive to promote American interests are forcing the government and its European allies to consider a world where they can no longer rely on the US partnership.

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In his Bundestag address, Merz reiterated that he wants to work hard to preserve the NATO military alliance “despite some irritations.”

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“This alliance and trust in NATO, which has grown over more than seven decades, are still the best guarantee of freedom, peace and security for all those involved on both sides of the Atlantic,” he said.

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At the same time, he pitched Germany and Europe as an alternative partner to nations seeking to diversify away from the US and China.

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“We should not underestimate how attractive this European model can be for new partners and new alliances,” Merz said. “We are, after all, a viable alternative to imperialism and autocracy on the world stage.”

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Merz’s speech came after his coalition published a policy paper Wednesday that referred to a “paradigm shift” taking place in a world where “major powers act without regard for others” and “economic shocks become more likely.”

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“To survive in this new world order, to preserve peace, freedom, and prosperity, and to assert its sovereignty, Germany, and indeed Europe as a whole, must become stronger,” according to the paper.

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The coalition said reforms it has already enacted — including massive investment in infrastructure and the military, tax relief for businesses and a reduction in energy costs, and acceleration of planning and approval — are “already making a significant contribution to the adaptability and strengthening of the economy and society.”

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“However, in light of international threats, we must further accelerate our efforts to increase resilience and sovereignty,” it added.

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Concluding Thursday’s address, Merz said he’s convinced Germany and Europe are a long way from fully exploiting their capabilities.

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“In this European Union, and in our country, there is so much potential that we can make something good out of this difficult situation in the world,” he told lawmakers.

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“We are under pressure from multiple sides but a lot of good can come from that pressure, and perhaps we even need that pressure.”

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