Merz urged the EU to prepare for a crisis over Trump's policies

Friedrich Merz, Germany's incoming Chancellor, has expressed the view that US President Donald Trump's tariff policy could lead to a global financial crisis. In an interview with Handelsblatt , he also outlined key measures that could help avoid such threats.

Merz emphasised that Trump's aggressive tariff policy increases the risks of economic turmoil and advocated the creation of a free trade agreement between the US and European countries.

I'm hoping for a new free trade agreement across the Atlantic, with zero tariffs on all goods. That would benefit both sides," the politician said.

Merz also noted that if the US decides to completely withdraw from global trade, Europe will have to focus on third country markets.

President Trump's policies make it more likely that the next financial crisis will come sooner than predicted. We, the Europeans, must offer a convincing response, - emphasised the future Chancellor of Germany.

Recall, on 2 April, Trump announced the introduction of duties of up to 50% against 211 countries and territories, explaining it by the need to restore the US economy. His decision and China's response provoked a fall in world markets. The dollar also fell against the currencies of key US partners, with Brent crude oil prices falling to a four-year low. Some analysts said there was a high probability of recession in the US and a drop in GDP.

Later, Trump, said he postponed the introduction of large-scale duties for 90 days. The Republican emphasised that it was a matter of a "pause". He explained his decision by the fact that the affected countries had asked the US to discuss a solution to trade barriers and duties and yet "did not take any retaliatory measures". However, for China, duties as high as 145 per cent remained in place.