Merz ‘surprised’ by Asian pushback to ‘Made in Europe’ plan for car industry

Key Points:

• German Chancellor Friedrich Merz expressed surprise at the strong opposition from East Asian countries, including South Korea and Japan, against the EU's "Made in Europe" car subsidy rules that favor vehicles produced within the EU, Switzerland, and the U.K.
• South Korean President Lee Jae Myung and Japanese officials requested that their countries receive treatment similar to EU member states under the new subsidy regulations.
• Merz acknowledged concerns in the region about potential European protectionism and pledged to address these issues at the upcoming EU leaders' summit in Dublin on November 13.
• In response to broader trade tensions, Merz proposed forming a global alliance of middle powers—including the EU, Asian nations, Canada, Australia, New Zealand, and Mercosur—to uphold rules-based trade and counter economic pressure from major powers like China and the U.S.
• The resistance from South Korea and Japan highlights challenges in reconciling industry-specific disputes with the goal of building a unified international trade alliance.