Merz and Trump Signal Thaw in Trade Tensions and Call for Ukraine Ceasefire

In their first direct conversation since taking office, German Chancellor Friedrich Merz and U.S. President Donald Trump have pledged to repair strained trade relations and intensify cooperation on bringing an end to the war in Ukraine. The 30-minute phone call, described by government insiders as “remarkably positive and polite,” took place just two days after Merz’s swearing-in as chancellor and has already set the tone for a recalibration of transatlantic ties.

Both leaders agreed on the urgency of resolving trade disputes between the United States and the European Union, while also expressing a shared desire to work toward a ceasefire in Ukraine. The conversation, held on Thursday evening, was the first official contact between the two leaders.

A Call Framed by Urgency and Symbolism

President Trump congratulated Merz on his recent election and inauguration. Merz responded by emphasizing the enduring partnership between Germany and the United States, stating that even 80 years after the end of World War II, the U.S. remains a “vital friend and partner” to Germany.

Chancellor Merz used the opportunity to underline the need for intensified dialogue, proposing reciprocal visits. He personally invited Trump to Germany, mentioning the president’s ancestral roots in Kallstadt, a town in Rhineland-Palatinate. Trump reportedly expressed interest in such a visit, having only previously been in Germany for the 2017 G20 summit and brief stops at Ramstein Air Base. Trump, in turn, extended an invitation to Merz to visit Washington. The German leader has already indicated a willingness to travel to the U.S. before mid-June, ahead of both the G7 and NATO summits.

Ending the Ukraine War: A Common Goal, But Different Approaches

The largest portion of the call focused on the war in Ukraine. Both leaders stated their belief that the fighting must come to an end swiftly. According to German government spokesperson Stefan Kornelius, Merz and Trump agreed that Russia must agree to a ceasefire to enable negotiations to begin.

Trump assured the chancellor of his firm support for Europe’s peace initiatives, committing to work alongside Germany, France, the UK, Poland, and other European partners toward a durable peace settlement. Despite their alignment on the goal of ending the conflict, subtle differences in strategy remain. While Trump is known to favor pressure on Ukraine to make concessions, Berlin and its allies continue to warn against any form of dictated peace terms.

In a separate call with Ukrainian President Volodymyr Zelenskyy, Chancellor Merz reaffirmed Germany’s ongoing military and political support for Ukraine. Both leaders acknowledged the importance of diplomatic initiatives and welcomed the involvement of the United States in seeking solutions.

Trade Dispute De-Escalation in Sight — But Challenges Remain

The second core topic of the call was the escalating trade dispute between the U.S. and the EU. Merz and Trump expressed a shared commitment to resolve the issue swiftly. The German leader urged a broader EU-U.S. agreement that would eliminate tariffs and expand the mutual recognition of technical standards.

However, obstacles remain. On the same day as the call, the European Commission announced its readiness to impose retaliatory tariffs on American exports worth up to €95 billion if no progress is made in ongoing negotiations. The current deadline for a deal is set for July, when a 90-day window offered by Trump to the EU expires. If unsatisfied with European proposals, Trump plans to introduce sweeping new import duties that would add to the ones already in place.

Despite these complications, German officials described the tone of the discussion as optimistic. Merz made it clear that a trade war must be avoided and that the solution lies in expanding areas of mutual recognition, particularly concerning technology and industrial compliance.

Tensions in the Background: Political Friction Not Mentioned Officially

While the official statement avoided contentious issues, recent tensions between Berlin and Washington remain unresolved. Just days before the phone call, Merz publicly criticized the U.S. government’s perceived interference in German domestic affairs. His comments referred to U.S. support for the far-right Alternative for Germany (AfD) and Washington’s objection to the party’s classification as extremist by German intelligence.

“I would like to encourage the U.S. government to let Germany handle its internal politics independently and refrain from partisan commentary,” Merz stated in a televised interview.

Though not brought up during the call, the issue lingers in the background of the newly reestablished dialogue between Washington and Berlin. Whether future meetings will address such topics remains to be seen.

Mutual Interests Drive New Cooperation

Despite underlying tensions, both governments appear motivated to maintain a working relationship built on mutual interests. Chancellor Merz’s pro-transatlantic stance and President Trump’s emphasis on deal-making may offer a pragmatic path forward, at least in economic and geopolitical terms.

The exchange has already led to concrete diplomatic plans. High-level visits are in the works, and communication channels between both administrations are now active. The coming weeks will show whether intentions can turn into progress — particularly on trade policy and the Ukrainian conflict.