Germany’s Merz Says Trump Tariffs Risk Fanning Financial Crisis

German Chancellor-in-waiting Friedrich Merz said Donald Trump’s tariff policies increase the risk of a financial crisis and advocated for a US-European free trade agreement, picking up on an idea that has drawn a hostile response from the US president.

“Yes, I’m hoping for a new transatlantic free-trade accord,” Handelsblatt cited Merz as saying in an interview. “Zero percent tariffs on everything. That would be better for both sides.”

The European Union has proposed reciprocal “zero-for-zero” tariffs on industrial goods to the US. Trump told reporters Monday that proposal wasn’t sufficient and suggested Europe should offset them by buying ...