German Chancellor Welcomes Trump’s Tariff Reversal: NATO Built on Allies’ Trust

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German Chancellor Friedrich Merz welcomed U.S. President Donald Trump’s announcement that he will not use military force to acquire Greenland, describing it as “good news” following Trump’s decision to cancel the planned February tariffs on several European countries over the issue.

However, Merz warned that Europe must assert its own power, as the world is becoming increasingly dangerous. He noted that U.S. foreign policy is undergoing radical changes, shaking the foundations of the international order.

“This new world of great powers is built on power, force, and, when necessary, violence. This is not a peaceful world,” Merz said during his speech at the World Economic Forum in Davos.

He called on European countries to increase defense spending and strengthen economic competitiveness to navigate these “tectonic” shifts in the global order. At the same time, Merz urged Europeans and Germans not to abandon the transatlantic alliance and NATO.

“Despite all the frustration and anger of recent months, do not rush to label the transatlantic partnership as lost. We Europeans, we Germans, know how valuable the trust is on which NATO is built,” he emphasized.

The Risks of Great Power Rivalry

Merz also highlighted the dangers of the renewed rivalry between great powers:

“A world in which only power counts is dangerous — first for small states, then for medium powers, and ultimately even for the great ones. I do not say this lightly. In the 20th century, my country, Germany, went down this path to a bitter end and dragged the world into a black abyss.”

Europe’s Three-Pillar Plan

To address these challenges, Merz proposed a three-pillar plan for Europe:

  1. Massive investment in defense
  2. Increased economic competitiveness
  3. Unity among European nations

He also stressed the need for new global trade agreements to strengthen Europe’s economy and counter Trump’s tariff policies:

“Europe’s trade ambitions are clear: we want to be an alliance that offers open markets and trade opportunities,” Merz said, adding that Europe must resist unfair state-sponsored practices, raw material protectionism, technology bans, and arbitrary tariffs.