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German Chancellor-Elect: Trump's Tariffs Increase Financial Crisis Risk

German Chancellor-elect Merz stated that Trump's tariff policy has increased the risk of a financial crisis and advocated for a US-EU free trade agreement. He said: "I hope to achieve a new transatlantic free trade agreement that imposes zero tariffs on everything, which is good for both sides." The EU has proposed imposing "zero-for-zero" reciprocal tariffs on US industrial products. Trump told reporters on Monday that this proposal is not enough, suggesting that Europe should offset the tariffs by buying 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 arriving early. We Europeans need to come up with persuasive countermeasures."