Esta historia fue traducida del inglés por un editor de AP con la ayuda de una herramienta de inteligencia artificial generativa.
Merz has said that “the government will in the future provide all the financing the Bundeswehr needs to become the strongest conventional army in Europe.” He hasfor all allies to aim to spend 3.5% of GDP on their defense budgets by 2032, plus an extra 1.5% on potentially defense-related things like infrastructure.
Another top priority for Merz is to get, Europe’s biggest, moving again after it shrank the past two years. He wants to make it a “locomotive of growth,” but Trump’sare a potential obstacle for a country whose exports have been a key strength. At present, the economy is forecast to stagnate in 2025.
Germany exported $160 billion worth of goods to the U.S. last year, according to the Census Bureau. That was about $85 billion more than what the U.S. sent to Germany, a trade deficit that Trump wants to erase.The U.S. president has specifically gone after the German auto sector, which includes major brands such as Audi, BMW, Mercedes Benz, Porsche and Volkswagen. Americans bought $36 billion worth of cars, trucks and auto parts from Germany last year, while the Germans purchased $10.2 billion worth of vehicles and parts from the U.S.
Trump’s 25% tariff on autos and parts is specifically designed to increase the cost of German-made automobiles in hopes of causing them to move their factories to the U.S., even though many of the companies already have plants in the U.S. with Volkswagen in Tennessee, BMW in South Carolina and Mercedes-Benz in Alabama and South Carolina.
There’s only so much Merz can achieve on his view that tariffs “benefit no one and damage everyone” while in Washington, as trade negotiations are a matter for the European Union’s executive commission. Trump recently delayed a planned 50% tariff on goods coming from the European Union, which would have otherwise gone into effect this month.“‘Too Late’ Powell must now LOWER THE RATE,” Trump said on his Truth Social platform. “He is unbelievable!!!”
The Fed has yet to cut interest rates this year after slashing them through the end of 2024. Part of the reason for the pause is that the Fed wants to see how much Trump’s tariffs will hurt the economy and raise inflation. While lower interest rates could boost the economy, they could also give inflation more fuel.Longer-term Treasury yields have also been rising in recent weeks because of reasons outside the Fed’s control. Investors have been demanding the U.S. government pay more in interest to borrow because of
through tax cuts under discussion on Capitol Hill.Investors are hoping for deals that will lower Trump’s tariffs. But nothing is assured. The European Union’s top trade negotiator, Maroš Šefčovič,