In a dramatic turn of events, German Chancellor Friedrich Merz has thrown his support behind urgent measures to replace the World Trade Organization (WTO), as EU leaders scramble to avert a looming trade crisis with the United States. With just days to go before a critical July 9 deadline, the stakes couldn’t be higher: failure to secure a swift trade agreement could result in a staggering 50% tariff on European goods.

During a marathon 16-hour debate in Brussels, Merz stressed the necessity of a “quick and simple” deal, urging fellow EU leaders not to complicate negotiations with excessive deliberations. “We must now reach a quick result,” he declared, echoing the sentiments of French President Emmanuel Macron, who is equally eager to expedite the process. Industries across Europe, particularly in the automotive and chemical sectors, are already feeling the pressure from existing tariffs, heightening the urgency for a resolution.

As tensions rise, the German Chancellor also endorsed a radical proposal from European Commission President Ursula von der Leyen to create a new trade body to replace the increasingly ineffective WTO. “We all know the WTO doesn’t work anymore,” Merz stated, signaling a shift in strategy as EU leaders seek to redefine global trade dynamics in an era marked by unpredictability under President Trump.

The clock is ticking, and the EU is divided: some call for rapid negotiations while others advocate for a more thorough approach. However, momentum appears to be favoring a quick resolution, as leaders fear the consequences of prolonged discussions. With whispers of re-evaluating the euro’s position as a global currency and the potential exclusion of the U.S. from a new trade framework, the urgency for action has never been clearer. The fate of European industries hangs in the balance, and the world watches closely as the EU races against time to secure its economic future.