Chancellor-to-be Friedrich Merz stressed the urgent need for Germany to enhance its competitiveness as global stock and bond markets face volatility after U.S. President Donald Trump's tariff announcement. Merz emphasized that immediate action was crucial to address the current economic challenges. He called for tax reductions, bureaucratic streamlining, and lower energy costs as part of the coalition negotiations between his conservative bloc and the Social Democrats. Trump's tariffs have escalated the economic difficulties for Germany and other EU nations, particularly affecting steel, aluminum, cars, and other imported goods. The uncertain economic landscape has raised fears of a recession and potential interest rate cuts. The ongoing tariff situation complicates efforts to steer Germany out of its two-year economic downturn.