German Chancellor Friedrich Merz warned that US tariffs imposed under the new trade agreement between Brussels and Washington would cause "significant damage" to Europe's largest economy.

The trade agreement, announced on Sunday, imposes a 15% tariff on most goods from the EU. Before the agreement was reached, US President Donald Trump threatened the bloc with a 30% tariff.

The agreement reached reduces the existing tariff rate for the European automotive sector, which is a mainstay of the German economy, by almost half, from 27.5%, Merz said.

"But I am well aware that the remaining tariffs — especially 15% versus 0% on imports into the EU — represent a serious burden on Germany's export-oriented economy," the chancellor said at a press conference in Berlin.

"I am not satisfied with this result in the sense of 'This is good'. But I would say that, given the starting point we had with the US, it was simply not possible to achieve more," he added. 

Merz thanked the European Commission for its "tireless negotiations" with its American partners, in which the German, French, and Italian governments were particularly involved.

"Personally, I did not expect more than this result," he emphasized. | BGNES