German Chancellor Friedrich Merz welcomed the trade agreement between the United States and the European Union. According to him, it avoided "unnecessary escalation of transatlantic trade relations," although some industries believe that tariffs remain too high.

"In this way, we have managed to preserve our core interests, although I would have liked to see greater relief in transatlantic trade," Merz said in a statement released shortly after the agreement was announced.

The agreement sets a 15% tariff on most EU exports. The US is Germany's main trading partner, AFP reported.

Merz said he was particularly relieved for the automotive industry, which before the agreement faced tariffs of 27.5%.

In addition to automobiles, Germany's chemical and engineering industries are particularly dependent on exports to the US.

The German Chemical Industry Association (VCI) said the agreement left rates "too high."

"When you expect a hurricane, you are happy with a mere storm. Escalation has been avoided, but the price is high for both sides," the VCI said in a statement.

There are still many details in the agreement that need to be ironed out, and the chancellor expressed her "full support" for the European Commission "for the negotiations that will now begin."

German Finance Minister Lars Klingbeil said the agreement was "a good first step."

"We will now assess the outcome of the negotiations and their impact on the economy and employment in Germany," he added. | BGNES