German Chancellor Friedrich Merz has warned that U.S. President Donald Trump’s threat to impose 30% tariffs on European Union exports would strike at the heart of Germany’s export-dependent economy if negotiations fail to deliver a resolution by early August. Merz emphasized that such tariffs would “overshadow everything” and force Berlin to reconsider parts of its economic policy.

Speaking in an interview with ARD, Merz said the European Union will extend its suspension of retaliatory measures against the U.S. until August 1 in hopes of reaching a deal to avert a damaging trade war. Trump issued the threat over the weekend, prompting urgent talks among European leaders.

“We want to use this time now, these two and a half weeks until August, to find a solution,” Merz said. “I am really committed to this.”

The German leader said he had already discussed the situation intensively with French President Emmanuel Macron, European Commission President Ursula von der Leyen, and Trump himself.

Germany Ready to Respond if Necessary

While expressing hope for a diplomatic resolution, Merz confirmed Germany would support EU counter-tariffs if no agreement is found. “Yes, but not before August 1,” he said when asked directly about retaliatory measures.

Merz stressed the need for EU unity and open lines of communication with Washington to prevent tariffs of such magnitude from being enacted. He warned the proposed tariffs would fundamentally impact Germany’s key industries, which rely heavily on exports to the U.S.