Trump hosts Germany's Merz against backdrop of Iran strikes, tariff threats

By Andrea Shalal and Andreas Rinke

WASHINGTON, March 3 (Reuters) - U.S. President Donald Trump hosts German Chancellor Friedrich Merz at the White House on Tuesday for talks on sensitive topics ranging from U.S.-Israeli strikes on Iran to Trump's new tariff threats and the German leader's recent visit to China.

Merz left Berlin for Washington as Germany and France announced plans to deepen cooperation on nuclear deterrence, another move by the European neighbors to adapt to changes in the transatlantic relationship amid ongoing threats from Russia and feared instability linked to the Iran conflict.

Merz, fresh off the heels of a visit with Chinese President Xi Jinping, will work to maintain the positive relationship he has forged with Trump over the past year, aided by Germany's leadership in raising its defense spending.

But that will require delicate diplomacy given European concerns over the legality of the Iran strikes under international law, and deep worries over Trump's threat to pile fresh tariffs on global goods.

He will be the first European leader to visit Washington in the aftermath of the Iran attacks - which have blocked one of the world's key oil shipping lanes and thrown global air transport into chaos - and the Supreme Court's ruling on February 20 that Trump's emergency tariffs are illegal.

Initially expected to focus on trade, the discussions will likely be dominated by the U.S.-Israeli attack that killed Iran's Supreme Leader Ayatollah Ali Khamenei and other Iranian leaders over the weekend.

On Sunday, Merz expressed no criticism of the U.S. airstrikes but stopped short of endorsing an operation which Trump's critics have said was undertaken without sufficient explanation and the required legal backing in international law.

"We recognize the dilemma," he said, explaining that repeated attempts over past decades had not put Iran off trying to acquire nuclear weapons or oppressing its own people. "So we're not going to be lecturing our partners on their military strikes against Iran."

Jeff Rathke, president of the American-German Institute, a Washington-based think tank, said the Trump administration did not expect much from the meeting, with no major investment announcements on the horizon.

"It makes it inevitable that the U.S. and Israeli attacks in Iran will be more of a focal point," which could prove risky for Merz, Rathke said. "He might be asked directly whether Germany supports the U.S. and whether Germany would provide material support to the U.S. campaign, if asked."

Charles Lichfield, director of economic analysis at the Atlantic Council's GeoEconomics Center, said Trump was likely keen to speak with Merz about his visit to China and gather details ahead of his own visit there in less than a month.

"Merz can tell Trump about what he heard and what he saw in China, and say, 'We need to do something together. We'll be stronger against China together,'" he said, noting that industrial overcapacity and global imbalances were key elements of the U.S. agenda for the Group of 20 nations this year.

Merz might also use the trip to press Trump for more detail on what he plans to do next on Iran, said Julianne Smith, who served as U.S. ambassador to NATO under former President Joe Biden.

"So, if nothing else, it can be a fact-finding mission to try to determine, 'Do you guys have a plan for the day after?'" she said.