German Chancellor Friedrich Merz urged the European Union to prepare faster trade defenses at the Berlin Global Dialogue on Wednesday, saying market distortions threaten European industry even as the bloc pursues talks with trading partners.
The European Council called on the European Commission to continue talks on global imbalances and develop new trade instruments urgently in conclusions from its Oct. 15-16 meeting. The conclusions set out that broad direction without identifying the specific measure Merz described.
Merz said proposals he presented with French President Emmanuel Macron received unanimous support from EU leaders. One proposal would give the Commission a country-neutral tool to respond quickly when European industries or supply chains face targeted pressure, he said.
The EU recorded a €372 billion goods trade deficit with China in 2025, according to a Eurostat article published Sept. 24 using data extracted in August. Reuters reported that Merz described the deficit with China as untenable, citing excess capacity, subsidies and an undervalued currency.
In his speech, published by Germany’s government, Merz also identified aggressive pricing among practices that could warrant an EU response. He said excessive imbalances harmed European industry. “We are not looking for a trade conflict,” Merz said.
Merz said the Commission should keep talking with trading partners and that the proposed approach would apply to all countries. He described the aim as having the tool available even if the EU did not need to use it.
The Council asked the Commission to press ahead with work on new instruments, but its conclusions set no decision date for the measure Merz outlined.
