By Andrew Gray and Thomas Escritt BRUSSELS (Reuters) -German Chancellor Friedrich Merz did not rule out common European Union borrowing for defence during a trip to Brussels on Friday, but said it must be for exceptional circumstances and voiced concern about rising global debt.

Merz and French President Emmanuel Macron — firm believers in the European Union and leaders of the continent's largest economies — used their first meeting since the German leader’s appointment Tuesday to show unity on Ukraine and other issues causing alarm in Europe.

German Chancellor Friedrich Merz on Friday called for the cancellation of the European Union's supply chain law during his inaugural visit to Brussels as head of government. "We will revoke the national law in Germany.

The bloc said it could target more than $100 billion worth of American products with tariffs if negotiations with the U.S. break down.

The European Union is planning to hit €95 billion ($108 billion) of US exports with additional tariffs if ongoing trade talks with President Donald Trump’s team fail to yield a satisfactory result.

The EU on Thursday threatened to target US cars and planes among a raft of products worth 95 billion euros ($107 billion) if negotiations with President Donald Trump's team fail