The Pentagon announced last week that around 5,000 troops would be withdrawn, but Trump said on Saturday the reductions would go “a lot further,” without providing details or a timeline. The decision comes amid tensions between Washington and European capitals over the U.S.-Israeli war on Iran and what U.S. officials see as limited European involvement.

Speaking at a summit in Yerevan, Norwegian Prime Minister Jonas Gahr Støre said the move should not be overstated but underscored expectations that Europe take on greater responsibility for its own security. He added that any adjustments should be managed within the framework of NATO.

European Union foreign policy chief Kaja Kallas said discussions about reducing U.S. troop presence in Europe were not new, but the timing of the announcement was unexpected. She said the development highlighted the need to strengthen the European pillar within NATO.

NATO officials said they were seeking further clarification from Washington. Alliance spokesperson Allison Hart said discussions were ongoing to understand the implications for U.S. force posture in Germany.NATO Secretary-General Mark Rutte played down the decision, linking it to broader U.S. dissatisfaction with European responses to the Iran conflict.

He said European allies had taken note of U.S. concerns and were working to implement existing basing agreements and position key military assets closer to potential operational theaters.The troop reduction follows earlier signals from Washington that a drawdown in Europe was likely. Some U.S. forces had already been withdrawn from Romania in October, although U.S. officials had previously indicated such changes would be coordinated with allies to avoid creating security gaps.

Tensions have also emerged over operational support for U.S. actions in the Middle East. Countries including Spain, France and the United Kingdom have declined to grant full access to bases or airspace for operations linked to the Iran conflict, reflecting divisions within the alliance over the scope of involvement.

European governments have signaled they are stepping up preparations, including positioning military resources closer to strategic regions, though officials have provided limited detail. Leaders have also indicated reluctance to engage in securing key maritime routes such as the Strait of Hormuz until the conflict subsides.

The Pentagon had announced on Friday that about 5,000 troops would be withdrawn from Germany over the next six to 12 months, but Trump said the reduction would go significantly beyond that figure.“We’re going to cut way down, and we’re cutting a lot further than 5,000,” Trump told reporters in Florida, offering no detailed explanation for the expanded drawdown.

The move escalates tensions with German Chancellor Friedrich Merz and comes amid broader disputes between Washington and European allies over defense spending, the war in Iran and trans-Atlantic trade.Germany currently hosts around 36,000 U.S. service members, including major strategic facilities such as Ramstein Air Base, the headquarters of U.S. European Command and U.S. Africa Command, and the Landstuhl Regional Medical Center, a major military hospital serving overseas operations.

A withdrawal of 5,000 troops would represent roughly one-seventh of the U.S. military presence in Germany, though the Pentagon has not clarified which units or operations would be affected by the larger reduction Trump indicated.

German Defense Minister Boris Pistorius said earlier on Saturday that the initial drawdown was expected and reflected a broader reality that Europe must take greater responsibility for its own security.“The presence of American soldiers in Europe, and especially in Germany, is in our interest and in the interest of the U.S.,” Pistorius told German news agency dpa.

“We Europeans must take on more responsibility for our security,” he added, pointing to Germany’s increased defense spending, faster procurement and military modernization efforts.NATO also responded cautiously, with spokesperson Allison Hart saying the alliance was working with Washington to understand the details of the force posture changes.

“This adjustment underscores the need for Europe to continue to invest more in defense and take on a greater share of the responsibility for our shared security,” she said in a post on X, while noting progress toward the alliance’s defense spending target of 5% of GDP among member states.

The troop reduction has faced immediate resistance in Washington from both Democrats and senior Republicans, who warned that it could weaken deterrence against Russia as Moscow’s war in Ukraine enters its fifth year.

Republican lawmakers Senator Roger Wicker and Representative Mike Rogers, who chair the Senate and House armed services committees, said they were “very concerned” the decision would risk “undermining deterrence and sending the wrong signal to Vladimir Putin.”They also said the Pentagon had canceled the planned deployment of the Army’s Long-Range Fires Battalion, a move they argued would further weaken NATO’s eastern posture.

Trump’s renewed push to scale back troop deployments follows longstanding criticism of European allies for relying too heavily on U.S. defense guarantees while underinvesting in their own militaries.His frustration has deepened over Europe’s reluctance to fully support Washington’s military campaign with Israel against Iran, as well as over trade disputes with the European Union.

Trump recently accused the EU of failing to comply with a trade agreement and said he would raise tariffs next week on European-made cars and trucks to 25%, a step likely to hit Germany’s export-driven auto sector particularly hard.

Merz last week criticized U.S. strategy toward Iran, saying Washington was being “humiliated” by Iranian leadership and lacked a coherent approach.Pentagon spokesperson Sean Parnell said the troop withdrawal followed “a thorough review” of U.S. force posture in Europe and reflected operational needs and current conditions on the ground.

A U.S. defense official, speaking on condition of anonymity, said military branches had no prior notice of the decision and learned of the reduction in real time, underscoring internal concerns over the abruptness of the move.

Germany remains central to U.S. military operations in Europe, with permanent Army and Air Force deployments, logistical hubs and strategic nuclear assets, making any significant troop reduction symbolically and operationally sensitive for NATO.

Trump made the remarks in a social media post after Merz said earlier this week that the United States was being “humiliated” by Iran’s leadership and questioned Washington’s strategy in the conflict, which has entered its third month and has disrupted global energy flows.

“The United States is studying and reviewing the possible reduction of Troops in Germany, with a determination to be made over the next short period of time,” Trump wrote.The threat marked the latest strain in relations between Washington and Berlin as Trump has repeatedly criticized NATO allies for refusing to support the U.S. military campaign against Iran, while European leaders have raised concerns over the economic consequences of prolonged instability in the Gulf.

Merz said on Wednesday that his personal relationship with Trump remained “as good as ever,” but added that he had “had doubts from the very beginning about what was started there with the war in Iran.”Speaking hours before Trump’s post, Merz said Germany and Europe were facing significant economic pressure from the closure of the Strait of Hormuz, the vital shipping route through which around one-fifth of global oil supply had moved before the conflict began on Feb. 28.

“We are suffering considerably in Germany and in Europe from the consequences of, for example, the closure of the Strait of Hormuz,” Merz said. “And in that regard, I urge that this conflict be resolved.”The waterway has remained effectively shut since hostilities intensified, adding to volatility in global energy markets and raising fears of wider supply disruptions across Europe and Asia.

Merz, who met Trump at the White House in March shortly after the U.S. and Israel launched bombardments against Iran, had then said Germany was prepared to work with Washington on a strategy for a post-conflict regional order if Iran’s current government were to fall.

He also warned that an extended war could inflict serious damage on the global economy.

Trump, however, has openly attacked the German chancellor in recent days. On Tuesday, he said Merz wrongly believed Iran should be allowed to possess a nuclear weapon and wrote that the German leader “doesn’t know what he’s talking about.”

“It’s no surprise that Germany is doing so poorly, both economically and in other respects,” Trump added.The dispute has revived memories of Trump’s first term, when he sought to withdraw about 9,500 of the roughly 34,500 U.S. troops then stationed in Germany, arguing Berlin was failing to spend enough on defense. That plan was announced in 2020 but never implemented, and former President Joe Biden formally halted it after taking office in 2021.

Germany hosts several major U.S. military installations, including the headquarters of U.S. European Command and U.S. Africa Command, Ramstein Air Base, and Landstuhl Regional Medical Center, the largest American military hospital outside the United States.

Merz said his government remained “on good speaking terms” with the Trump administration despite the latest dispute.

The German premium carmaker posted earnings before interest and tax (EBIT) of 1.9 billion euros ($2.22 billion) for the first quarter, down 17% from a year earlier but ahead of the average analyst forecast of 1.6 billion euros, according to a Visible Alpha poll.

Revenue for the quarter came in at 31.6 billion euros, slightly below analyst estimates of 31.8 billion euros, reflecting continued pressure on sales volumes in key overseas markets, particularly China, where luxury automakers have faced softer consumer demand and intensifying domestic competition.

Mercedes’ adjusted return on sales for its core passenger car division was 4.1%, compared with 7.3% in the same quarter last year, but remained within the company’s full-year target range of 3% to 5%.German automakers including Mercedes have been contending with a difficult external environment marked by high tariffs, sluggish Chinese demand and a challenging shift toward electric mobility, forcing manufacturers to cut costs while defending profitability.

Chief Executive Ola Kaellenius has responded with broad restructuring measures, including redundancies and tighter cost controls, while accelerating the rollout of new vehicle models aimed at reviving growth and protecting the brand’s premium position in China.Chief Financial Officer Harald Wilhelm said the company remained “on track” to meet its guidance for 2026 group EBIT to come in “significantly above” last year’s 5.8 billion euros.

“Strong demand for our new products and healthy order books position us well for improved momentum in the second half of the year,” Wilhelm said.Mercedes is planning to launch 40 new models between 2025 and 2027, including the all-electric CLA sedan in its entry-level segment and an upgraded S-Class lineup aimed at reinforcing its position in the high-end luxury market.

The company said it would continue strict cost discipline as it works toward a medium-term target of restoring double-digit profitability, with a longer-term margin goal of 8% to 10%.

The German navy vessel Fulda is being positioned to support a potential multinational operation aimed at protecting maritime navigation through the strategically vital waterway, where tensions surged after Iran effectively disrupted shipping routes during the recent war.

A defense ministry spokeswoman said the deployment was intended to make a “significant and visible contribution” to an international coalition seeking to safeguard freedom of navigation in the Strait of Hormuz, one of the world’s most critical energy transit corridors.

Several countries have indicated readiness to participate in what officials have described as a “neutral” maritime security mission following the end of hostilities between the United States and Iran.The United States said last week it had begun de-mining operations in coordination with Tehran, although Iranian authorities have not publicly confirmed such cooperation.

The minesweeper Fulda, a specialized vessel designed to detect and neutralize naval mines, will be stationed with a crew of around 45 personnel, the spokeswoman said.Any eventual deployment into the Strait of Hormuz itself would depend on what Berlin described as a lasting cessation of hostilities and formal approval from Germany’s Bundestag, the lower house of parliament, which is required for overseas military operations.

The conflict in Iran began on Feb. 28 with air strikes carried out by the United States and Israel, sharply escalating regional tensions and raising fears over global energy supply disruptions.In response, Iran’s military moved to effectively close the Strait of Hormuz, through which roughly one-fifth of global oil shipments normally pass, triggering a spike in international crude prices and renewed concerns over shipping security.

The narrow maritime passage linking the Persian Gulf to global markets remains one of the most strategically sensitive chokepoints in world trade, particularly for Europe and Asia’s energy imports.

Diplomatic efforts to stabilize the region have since intensified, with prospects for renewed negotiations between Washington and Tehran emerging this weekend in Pakistan, where both sides have reportedly sent envoys to Islamabad for indirect talks on ending the conflict.

Germany’s move reflects broader European efforts to restore stability in Gulf shipping lanes and prevent renewed disruption to commercial traffic after weeks of heightened military confrontation.

U.S. President Donald Trump said the agreement followed mediation efforts led by Pakistan, adding he would suspend threats of military action if Iran upheld the ceasefire and ensured full reopening of the Strait of Hormuz.

Pakistan’s Prime Minister Shehbaz Sharif said Islamabad would host talks between U.S. and Iranian delegations on Friday, describing both sides as constructively engaged. He expressed hope that the proposed “Islamabad Talks” would lead to sustainable peace.

China said it welcomed the ceasefire, with foreign ministry spokeswoman Mao Ning stating Beijing would continue efforts to restore stability in the Middle East.Iraq’s foreign ministry also supported the development, calling for “serious and sustainable dialogue” to address underlying disputes and build trust between the parties.

Turkiye backed the planned negotiations in Islamabad and stressed the importance of full implementation of the ceasefire on the ground, while Australia thanked mediators including Pakistan, Egypt, Turkiye and Saudi Arabia for their role in de-escalation efforts.

Egypt underscored the need to respect sovereignty and territorial integrity across the region, particularly for Gulf Cooperation Council countries and Jordan, warning against any violations that could threaten regional stability.

The United Nations welcomed the ceasefire, with Secretary-General Antonio Guterres urging all parties to comply with international law and uphold the terms of the agreement to pave the way for comprehensive peace.Indonesia also called for respect for sovereignty and diplomacy, while Germany’s foreign minister described the truce as a critical first step toward avoiding further escalation.

British Prime Minister Keir Starmer said the ceasefire would bring “a moment of relief” and confirmed plans to engage Gulf partners on ensuring the permanent reopening of the Strait of Hormuz.

Financial markets responded positively to the announcement, with oil prices falling and global stocks rising after Iran agreed to allow safe passage through the key waterway, which carries a significant share of the world’s energy supplies.

The Federal Office for the Protection of the Constitution (BfV) said the alert was issued in coordination with Germany’s foreign intelligence agency, the BND, and the U.S. Federal Bureau of Investigation.

The group, also known as “Fancy Bear,” has been attributed by Western governments to Russia’s military intelligence service, the GRU.According to the BfV, APT28 exploited weaknesses in TP-Link routers, affecting several thousand devices worldwide, including about 30 in Germany.

In some cases, authorities confirmed breaches, leading operators to replace compromised hardware.The agency said the campaign was aimed at facilitating surveillance of sensitive targets, including state institutions and key infrastructure networks.

APT28 has previously been linked to cyberattacks against Germany’s parliament, the Social Democratic Party and air traffic control systems, underscoring its long-standing role in espionage operations targeting European institutions.

German authorities urged heightened vigilance and coordination among operators to mitigate risks posed by the ongoing campaign.

Speaking alongside Syrian transitional President Ahmed Al-Sharaa in Berlin, Merz said both governments were seeking to create conditions that would allow more Syrians to return voluntarily to their homeland.

Germany hosts the largest Syrian diaspora in the European Union, with more than one million Syrians, many of whom arrived during the 2015–2016 migrant influx.“We are working jointly toward more Syrians being able to return to their homeland,” Merz said at a joint press conference.

Sharaa said Damascus and Berlin were exploring a “circular” migration framework that would allow Syrians to participate in rebuilding their country while retaining the option to remain in Germany.

Such a model would enable returnees to contribute to reconstruction efforts without permanently relinquishing the economic and social stability they have established abroad, he said.

Merz said Germany intended to support Syria’s reconstruction after years of civil war, adding that a German delegation would travel to Syria in the coming days to advance cooperation.

However, he stressed that deeper bilateral engagement would depend on progress toward establishing rule-of-law institutions.

“Many joint projects in the future will depend on our finding a state governed by the rule of law,” Merz said, adding that he was confident such conditions could be achieved following discussions with Sharaa.

Recent attacks on oil and gas infrastructure have already driven up prices, raising concerns about inflation, trade disruptions and broader economic slowdown across both advanced and emerging markets.

Across Europe, memories of the economic fallout from the Russia-Ukraine war are shaping concerns about a fresh energy shock.

Germany, with its industry-heavy economy, is particularly exposed to higher energy costs. Although manufacturing activity has shown signs of stabilisation after a prolonged downturn, rising input costs and weaker global demand could weigh on exports. While Berlin has introduced stimulus measures, fiscal constraints may limit further support.

Italy faces similar vulnerabilities, given its large manufacturing base and relatively high dependence on oil and gas in its energy mix.In United Kingdom, electricity prices are closely tied to gas costs, which have risen sharply since the conflict began.

While a price cap may soften the immediate impact on households, economists warn it could lead to prolonged high borrowing costs and strain public finances.

Japan remains highly vulnerable due to its reliance on imported energy, sourcing around 95% of its oil from the Middle East. Nearly 90% of these supplies pass through the Strait of Hormuz, making supply disruptions a critical risk.

The impact is compounded by a weak yen, which increases the cost of imports and adds to inflationary pressures affecting food and household goods.

In the Gulf, the conflict is expected to have a direct economic impact. While higher oil prices would typically boost revenues, disruptions to shipping routes could offset gains if exports are constrained.

Countries such as Kuwait, Qatar and Bahrain rely heavily on the uninterrupted flow of hydrocarbons through the Strait of Hormuz.

Any sustained blockage could hinder their ability to access global markets.The conflict could also affect remittance flows from expatriate workers, a key source of income for many households in the region.

Among large emerging economies, India is particularly exposed. It imports about 90% of its crude oil and nearly half of its liquefied petroleum gas, with a significant share transported via the Strait of Hormuz.

Higher energy prices could widen India’s trade deficit, fuel inflation and complicate monetary policy, especially if global financial conditions tighten in response to the crisis.

As energy markets remain volatile, the extent of the economic impact will depend on the duration of the conflict and the degree of disruption to global supply chains.

The announcement marks a shift toward optimism and collaboration, emphasizing peace, stability, and shared responsibility between both nations.

Merz acknowledged Germany’s long-standing humanitarian role during the Syrian civil war, when the country opened its doors to over one million refugees fleeing violence.

He praised the resilience and contributions of the Syrian community in Germany, recognizing their vital role in enriching German society, culture, and the economy over the past decade.

The chancellor’s message was framed around unity, opportunity, and the importance of rebuilding a peaceful Syria.

He expressed hope that many Syrians would voluntarily return home once conditions stabilize, bringing valuable skills and education that can strengthen their nation’s social and economic foundation.

Germany’s new focus is not on deportation but on creating pathways for safe, voluntary, and sustainable repatriation.

Officials emphasized that every decision will be guided by humanitarian principles, respect for international law, and coordination with global organizations to ensure the protection of human rights.

Merz noted that Syria’s transition from conflict to reconstruction presents a chance for healing and renewal.

He stressed that Germany stands ready to support this process through partnerships in infrastructure, education, and humanitarian assistance, helping to restore essential services and opportunities in Syrian communities.

The German government aims to work closely with the European Union, the United Nations, and Syrian authorities to build frameworks that encourage voluntary returns while ensuring safety and dignity for all participants.

This coordinated approach underlines Germany’s commitment to stability, peacebuilding, and mutual cooperation in the post-war phase.

Foreign Minister Johann Wadephul, during his recent visit to Syria, reaffirmed Germany’s commitment to humanitarian aid and development.

He emphasized that long-term peace will depend on social inclusion, reconstruction of local economies, and the reintegration of returning citizens into safe and productive environments.

German policymakers view this as an opportunity to transform the narrative on migration — from crisis to cooperation.

By empowering Syrians to rebuild their homeland, Germany seeks to create conditions for sustainable peace while continuing to support refugees who remain vulnerable or unable to return.

Community leaders and advocacy groups have welcomed the government’s renewed emphasis on voluntary repatriation and reconstruction.

They stress the importance of ensuring that any return process is based on individual choice, transparent communication, and adequate support for families transitioning back to life in Syria.

At the same time, Germany remains firm in its commitment to counter extremism, uphold security, and strengthen integration programs for those who stay.

Officials continue to highlight the achievements of Syrian professionals, students, and entrepreneurs in Germany who have become symbols of determination and coexistence.

The policy discussion also aims to balance compassion with responsibility, ensuring that humanitarian values remain central to migration and foreign policy.

Experts believe that successful reintegration of returning Syrians can contribute to regional stability, economic growth, and cultural exchange between Europe and the Middle East.Germany’s message is one of partnership, optimism, and renewal.

The government envisions a future where Syria stands as a stable, self-sufficient nation that maintains strong ties with Europe, particularly in education, trade, and innovation.

This vision aligns with Germany’s broader goal of promoting peace and unity through cooperation and shared development.

Chancellor Merz concluded his remarks with a hopeful tone, emphasizing that rebuilding Syria requires global support and the courage of its people.

Germany, he said, will continue to stand by the Syrian community, both at home and abroad, to ensure that peace, opportunity, and dignity become lasting realities for all.