Sanctions & trade RegionEurope Impact Notable
Merz says EU should protect industries, avoid trade war
What happened
German Chancellor Friedrich Merz said on Wednesday that the EU needs to protect its industries against unfair competition while keeping its markets open and avoiding a trade war.
What it means for markets
The statement signals a cautious EU stance on trade policy, which may reduce near-term risk of escalation in transatlantic tariffs. This could support European equities and the euro, as markets price in a less confrontational approach.
AssetExpectedMove since first report
Europe stocks VGK Cautious EU trade stance may reduce tariff risk for European equities
▲ Up
-0.05% 87.58 (2026-10-21) → 87.54 (2026-10-30)
Euro FXE Avoiding trade war supports euro sentiment
▲ Up
-0.58% 103.71 (2026-10-21) → 103.11 (2026-10-30)
What to watch
- Any specific EU trade measures or tariff proposals
- US response to EU trade policy signals
Source timeline
- en.gmw.cn EU should open markets , avoid trade war while protecting industries : Merz _ Guangming Online