Chancellor Merz warns Brussels of Asian concerns over EU protectionism

German Chancellor Friedrich Merz has announced his intention to raise concerns in Brussels regarding fears among Asian partners that European Union industrial policies could lead to a new wave of economic protectionism.

During a week-long tour of Japan, Singapore, and South Korea, Merz reported receiving similar objections in all three nations. The concerns center on the proposed EU Industrial Accelerator Act, which aims to strengthen the EU's industrial base by supporting local production and decarbonization. While the initiative is designed to boost competitiveness against foreign rivals and reduce trade dependency on China, Asian partners fear it may create new trade barriers.

Merz emphasized that for European products to succeed in Asian markets, the EU must remain open to trade. He also advocated for closer cooperation between mid-sized nations to act as a counterbalance to the shifting trade and foreign policies of the United States and China.