BERLIN

German Chancellor Friedrich Merz on Tuesday acknowledged that the EU-US trade deal agreed in July fell short of Berlin's expectations, saying that Europeans were "not strong enough yet" to negotiate better terms with the Americans.

Addressing German automotive industry representatives during the Munich auto show, Merz said he has been working hard to de-escalate trade tensions with the Donald Trump administration and ultimately resolve the dispute permanently through sound, legally binding agreements.

“I admit that I would have preferred a different, a better outcome for us, for the Europeans, in the agreement with the United States,” Merz said. “But we are not yet strong enough in Europe to be able to decide on such issues autonomously, on an equal footing. We want to get there, and that is why we need a strong industry, but we also need competitiveness on a global scale,” he added.

The conservative leader also underlined the importance of diversifying trade partnerships and said the EU should pursue an ambitious trade policy agenda to achieve this.