German chancellor Merz deepens China ties and warns US on tariffs

Thursday 19 - 16:20

By: Dakir Madiha

German chancellor Merz deepens China ties and warns US on tariffs

German Chancellor Friedrich Merz said he will pursue strategic partnerships with China during a visit next week, signaling a shift toward closer economic engagement with Beijing as trade tensions with Washington continue to simmer.

Speaking to supporters at his Christian Democratic Union’s Ash Wednesday rally in Trier on February 18, Merz said Germany has a strategic interest in identifying global partners that share its outlook, act in line with its values and are prepared to shape the future collaboratively. He stressed that foreign and economic policy can no longer be treated as separate spheres, according to remarks reported by Reuters.

The comments come ahead of Merz’s trip to China from February 24 to 27, which is expected to include the largest business delegation since former Chancellor Angela Merkel’s first term. According to Table.Briefings, which obtained a participant list, chief executives from leading German automakers will accompany him. Reuters reported that BMW CEO Oliver Zipse, Volkswagen CEO Oliver Blume and Mercedes Benz CEO Ola Källenius are among those planning to attend.

Warning to Washington

Merz delivered a pointed message to the United States over tariffs. He said that if Washington believes it can exert pressure through higher import duties, Germany and Europe would respond in kind with their own elevated tariffs.

“You can do that, but we will not follow,” Merz said in a video of the speech. He added that if tensions escalate further, Europeans are capable of defending their own economic interests.

His remarks underscore growing concern in Berlin over the direction of US trade policy and the potential for renewed transatlantic friction. The European Union recently extended by six months, until August 6, the suspension of tariffs on $109.8 billion worth of US imports after a de escalation of tensions linked to Greenland. The prospect of a broader trade confrontation, however, remains.

German automakers back engagement

Ahead of the visit, BMW chief Zipse called for continued cooperation with Beijing. He told Reuters that companies which distance themselves from the vast Chinese market and its innovation potential risk missing significant global growth opportunities. He described the chancellor’s trip as a strong signal in favor of dialogue and cooperation.

The outreach comes as Germany faces what some economists describe as a second China shock. German exports to China fell 9.3 percent to €81.8 billion in 2025, their lowest level in a decade, according to the Rhodium Group. At the same time, Germany’s trade deficit with China widened to around €90 billion, up nearly one third from 2024, based on data from the German Economic Institute.

Balancing dependence and diversification

Merz had campaigned on reducing Germany’s economic reliance on China, but the realities facing Europe’s largest economy appear to demand a pragmatic approach. On February 14, Chinese Foreign Minister Wang Yi met Merz in Berlin, where both sides discussed preparing the next stage of high level exchanges and strengthening cooperation, according to China’s Foreign Ministry.

The debate over economic ties with Beijing reflects a broader balancing act. Berlin is seeking to safeguard its industrial base and export markets while managing geopolitical risks and navigating trade tensions with the United States.

Merz noted that European unity had been evident during the recent dispute over Greenland and said the bloc would act collectively if the United States moves again to raise tariffs. His upcoming trip to China is set to test how far Germany is willing to recalibrate its economic strategy amid shifting global alliances.