US-EU standoff over steel and aluminum tariffs intensifies after G7

Europe will conduct countermeasures against US steel and aluminum tariffs, German Chancellor Angela Merkel said Sunday, expressing regret over President Donald Trump's harsh decision to withdraw from the G7 communique.

Trump left the G-7 summit in Canada before its conclusion, abandoning a joint communique, shattering what appeared to be a fragile consensus on a trade dispute between Washington and its best allies.


"The conclusion, so to speak ... sobering and a little depressing," Merkel said in a televised interview with ARD after the G7 summit.

Like Canada, the European Union is preparing countermeasures against US tariffs on steel and aluminum imports, in line with World Trade Organization rules, Merkel said.

When asked if she is worried that Trump might respond to EU opposition by setting tariffs on cars, Merkel said: “First of all, we will try to see if we can prevent this ... And then we hope that the EU will respond again in that same unity. "

Merkel said the G7 leaders have agreed to review their trade ties and assess the scale of existing tariffs to avoid further trade barriers.

Addressing Russia, Merkel said she could imagine Moscow moving into the G7 format at some point, but first it was necessary to make progress on the peace plan for Ukraine. Merkel said she expects Italy's new coalition government to vote to extend European sanctions against Russia.

On the thorny issue of Germany's low defense spending, Merkel acknowledged that Trump's criticism was partly correct and that Berlin needs to do more to meet NATO's goal of spending up to 2 percent of GDP on defense.