American consumers are starting to feel the effects of U.S. tariffs and the American economy "is not performing as well as the government had anticipated a year ago,” German Chancellor Friedrich Merz said in Berlin on Monday (January 19), adding the European Union was ready to react to new import duties.

"We do not want this escalation. We do not want a trade dispute with the United States," Merz said. "But if we are confronted with tariffs that we consider unreasonable, then we are capable of responding," he added.

The issue will be be discussed at an EU summit in Brussels on Thursday, Merz said, adding that he will try to meet with U.S. President Donald Trump in Switzerland on Wednesday. Merz also said talks with the United States should always be based on Greenland's sovereignty and territorial integrity.

"Denmark and the people of Greenland can count on our solidarity,” said Merz.

DESCRIPCIÓN DE IMÁGENES

1 GERMAN CHANCELLOR FRIEDRICH MERZ AND FELLOW CONSERVATIVE CDU CANDIDATE FOR RHINELAND-PALATINATE STATE PREMIER GORDON SCHNIEDER ARRIVING FOR NEWS CONFERENCE

2. CAMERAMAN

3. MERZ SMILING IN RESPONSE TO REPORTER’S QUESTION

4. CAMERA CREWS

5. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING:

"Tariffs benefit no one and harm almost everyone. American consumers are now noticing the effects of tariffs. The American economy is not performing as well as the American government had anticipated a year ago. In my opinion, this also has something to do with tariff policy. We do not want this escalation. We do not want a trade dispute with the United States of America.”

6. SIDE VIEW OF MERZ SPEAKING

7. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING:

"We will also have the opportunity to discuss this in various meetings in Davos this week. I will try to meet with President Trump again on Wednesday. I had a long telephone conversation with him on Thursday. We simply want to try to solve this problem together. The American government knows that we could also respond from our side. I do not want that. But if necessary, we will of course protect our European interests, including our German national interests.”

8. SCHNIEDER LISTENING

9. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING:

"If we are confronted with tariffs that we consider unreasonable, we are in a position to respond. That is exactly what we will be discussing in Brussels on Thursday” (at the EU summit).

10. REPORTERS TYPING ON LAPTOP

11. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING:

"The United States of America once had over 30,000 soldiers stationed in Greenland. There are currently fewer than 200. So obviously, even the United States' own threat analysis is not as dramatic as it is currently being presented, which does not mean that it could not become more serious again. The security situation could become more difficult. And since this is European NATO territory, we have an interest in protecting this area as well.”

12. REPORTERS, MERZ ON PODIUM SEEN IN DISTANCE

13. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING:

"Incidentally, the decision on this reconnaissance mission last weekend, which was initiated by the eight states, was discussed beforehand in the NATO Council in the presence of the American representative on the NATO Council. So it came as no surprise to the American government that this was taking place. It had been announced, it had been agreed upon, and, as I just said, it began and ended according to plan. It was never a military action. It was always a reconnaissance mission on behalf of the governments involved.”

14. MERZ SEEN IN CAMERA DISPLAY

15. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING:

"Denmark and the people of Greenland can count on our solidarity. We are prepared to support the talks with the United States. These talks should always be based on the principles of sovereignty and territorial integrity.”

16. SCHNIEDER SPEAKING ON PODIUM NEXT TO MERZ

17. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING (on MERCOSUR):

"I would also like to mention the historic date that took place last Saturday. This was the historic signing of the Mercosur Agreement with four South American countries, which coincided almost exactly with the announcement of the U.S. President's decision to impose further higher tariffs. This is an important step for us, also for economic strength in what is now the largest single market in the world, together with the South Americans.”

18. REPORTERS, MERZ ON PODIUM SEEN IN DISTANCE

19. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING (on FRANCE):

“I am in fact coordinating very closely with Emmanuel Macron on these issues as well. We had a long telephone conversation yesterday. France is affected by the American tariffs to a different extent than we are. And in this respect, I also understand that the French government and the French President want to react a little more harshly than we do. Nevertheless, we are trying, and succeeding, to adopt a common position before we go to the European summit. That will also be the case this time.”

20. PHOTOGRAPHER

21. (SOUNDBITE) (German) GERMAN CHANCELLOR, FRIEDRICH MERZ, SAYING (on GREENLAND/UKRAINE):

"We still have no indication that Putin is willing to come to the negotiating table and end this war. That is indeed my greatest concern for Europe's security at the moment. Not Greenland, but Ukraine. Thank you.”

22. MERZ ENDING PRESS CONFERENCE