German Chancellor Friedrich Merz issued a stark warning about the economic fallout for the German economy if the United States and the European Union fail to reach an agreement to avoid tariffs on the bloc's exports to the US.

German Chancellor Friedrich Merz told the broadcaster ARD that President Trump's threat of 30% tariffs on goods from the European Union as of Aug. 1 would hit the German export industry "to the core," and he vowed to work toward a solution.

German Chancellor Friedrich Merz on Sunday said he will work intensively with French President Emmanuel Macron and European Commission President Ursula von der Leyen to resolve the escalating trade war with the United States.