An alliance of “like-minded partners” would help countries resist the growing use of tariffs and economic coercion, he told a business summit in Tokyo, according to prepared remarks
International News via Reuters:
German Chancellor Friedrich Merz on Wednesday urged Japan to back a proposed global alliance to defend rules-based trade that he has been touting during a week-long Asia trip.
An alliance of “like-minded partners” would help countries resist the growing use of tariffs and economic coercion, he told a business summit in Tokyo, according to prepared remarks.
“Should the rules of the global trading system be violated by others, or should economic coercion be employed, we could coordinate our actions within the alliance and present a united front,” he said, an apparent reference to the US and China.
In responding to Merz’s proposal, China said it hoped Germany and the EU would be “objective and rational” and that it was committed to working with all parties to maintain the stability of trade and supply chains.
Merz’s initiative echoes calls by Canadian Prime Minister Mark Carney this year for the world’s middle powers to work more closely together to counter pressure from larger economies.
“If we move forward together, the question will no longer be whether we are ‘on the menu’ or ‘sitting at the table’,” Merz said, invoking a line used by Carney during his January speech.
“Because in that case, the restaurant itself belongs to us.”
Germany sees China as both a massive trading partner and a strategic rival. Coinciding with Merz’s visit, a report said Germany’s trade deficit with Asia-Pacific is set to hit a record of nearly €146 billion ($163 billion) in 2026 as falling exports to China outweigh growing sales elsewhere in the region.
Reporting by Andreas Rinke, Writing by Miranda Murray; editing by Matthias Williams
