Germany must broaden its trade horizons beyond its traditional transatlantic ties, Chancellor Friedrich Merz stated on Sunday, as questions intensify over the future of global trade governance and the durability of the multilateral system.
Speaking at the federal government’s Open Day in Berlin, an event designed to encourage public engagement with political institutions, Merz emphasised that Germany could not rely solely on its longstanding economic relationship with the United States, particularly in the wake of the recently announced EU–US framework trade deal of 28 July 2025. The agreement, brokered between U.S. President Donald Trump and European Commission President Ursula von der Leyen, imposes 15% tariffs on a range of European goods entering the American market.
Merz, leader of the centre-right Christian Democratic Union (CDU), warned that the United States’ willingness to circumvent established institutions such as the World Trade Organization (WTO) could have lasting consequences for global trade governance. “How do we handle world trade if, for example, the Americans are no longer prepared to play by the rules of the WTO?” he asked.
While noting that constructive economic relations with Washington remain essential, Merz suggested that new opportunities may lie in building deeper economic partnerships with regions including South America, Asia, and Africa. “We should search for partners in the world that share our thinking,” he observed, adding that such engagements should be mutually beneficial rather than extractive.
The chancellor’s remarks resonate strongly in the African context, where Germany has in recent years expanded investment and trade engagement. Initiatives such as the Compact with Africa have sought to foster sustainable economic partnerships, though critics argue that European approaches to African trade and development have at times prioritised European commercial interests over equitable outcomes. Merz’s statement may therefore signal a potential recalibration, opening the door to a more balanced engagement with African markets, particularly in sectors such as renewable energy, critical minerals, and digital infrastructure.
Domestically, Merz also used the opportunity to highlight the need for reform of Germany’s social security systems, including employment, pension, and healthcare provisions. He argued that welfare spending must be made sustainable to ensure long-term stability, asserting that “we have to make our social security systems fit for the future.”
According to a recent INSA poll published by Bild, the CDU currently commands 25% of public support, placing it on par with the far-right Alternative für Deutschland (AfD). This political landscape underscores the challenges facing Merz, who must navigate both international trade headwinds and domestic socio-economic pressures while maintaining his party’s relevance in a rapidly shifting political climate.
For Southern Africa, Germany’s stated intent to diversify its trade partnerships raises pertinent questions about how the region positions itself within an evolving global economy. If pursued with a genuine commitment to equity, German engagement could provide opportunities for industrial growth, technology transfer, and stronger trade balances. Yet, much depends on whether such partnerships can transcend Eurocentric models and support Africa’s own developmental priorities.
