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What’s at Stake as Trump Meets German Chancellor Merz on NATO and Trade?

HomeOpinionAnalysisWhat's at Stake as Trump Meets German Chancellor Merz on NATO and Trade?

WASHINGTON (CP) —German Chancellor Friedrich Merz met with President Donald Trump for the first time since taking office, discussing defense spending increases, trade deals, and military support for Ukraine in talks that could reshape how America and Germany work together after years of tension.

Merz visited Washington on June 5, 2025, marking his first trip to meet Trump since becoming Germany’s leader in May. The meeting focused on NATO military spending, trade between the two countries, and the ongoing war in Ukraine, a significant change from the approach of former German Chancellor Angela Merkel.

NATO member flags lined up inside the Brussels headquarters during heightened U.S.-Germany negotiations on defense and trade.
Flags of NATO member countries on display at NATO Headquarters in Brussels. The Merz–Trump summit focused on Germany’s increased defense spending and the future of NATO amid U.S. threats of trade tariffs. Photo Credit: Getty Images.

The most significant topic was NATO defense spending, where Trump has long complained that European countries do not pay enough for their protection. Merz promised Germany would increase its military spending to 5% of its total economy by 2032, much higher than the current 2% target. This would include 3.5% for purchasing weapons and equipment, plus 1.5% for building infrastructure necessary for military operations.

Trump praised Merz’s commitment and stated that American troops would remain in Germany. “I have no doubt whatsoever that the American government is committed to NATO,” Merz said after their private meeting. Dr. Stormy-Annika Mildner from the Aspen Institute Berlin remarked that Merz’s approach “requires more active management than ever,” but noted he successfully gained Trump’s approval.

Trade discussions dominated much of the meeting, as Trump threatened to impose a 50% tariff on European goods by July 9 if negotiations fail. Germany exports numerous products, making these tariffs potentially damaging. Current American tariffs on German goods include 50% on steel and aluminum, 25% on cars, and 10% on other products.

Merz cautioned that these tariffs threaten “nearly one million American jobs” at German companies like BMW and Volkswagen that operate in the United States. He proposed an “offset mechanism” that would allow Americans to buy German cars tax-free if Germans could purchase the same number of American vehicles without tariffs. While Trump did not publicly agree, Merz described their talks as “constructive.”

The two leaders disagreed most about Ukraine, where Russia has been engaged in conflict since 2022. Merz announced Germany would send $5.7 billion worth of long-range weapons that Ukraine can use to target sites within Russia. He urged Trump to exert more pressure on Russian President Vladimir Putin, saying, “You are the key person in the world who can stop this.”

Ukrainian soldier maneuvers near a large artillery gun as it fires in a snowy, wooded battlefield during the Russia–Ukraine war.
Germany’s $5.7 billion weapons pledge and NATO’s support for Ukraine were central topics in the Trump–Merz summit. Photo Credit: Getty Images.

Trump appeared less concerned, likening the war to children fighting and stating, “Sometimes you let them fight for a while before pulling them apart.” He claimed “5,000 to 6,000 soldiers die weekly” in Ukraine, showing little regard for the human toll. Trump also paused American military aid to Ukraine in March, resulting in European countries covering 78% of Ukraine’s defense costs.

Merz’s leadership style differs significantly from Merkel’s, who favored slow consensus-building with multiple countries. In contrast, Merz acts swiftly and directly. Karel Lannoo from the Centre for European Policy Studies commended this shift: “Leadership is what we need… Merz’s energy has filled a vacuum.”

The meeting highlighted both the necessity and fragility of the U.S.-Germany relationship. While Merz averted immediate trade wars and secured Trump’s support for NATO, larger challenges lie ahead, including whether Germany can genuinely afford the 5% military spending and whether trade compromises will provoke backlash from other European partners.

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