MUNICH (Reuters) - German Chancellor Angela Merkel said on Friday the best solution to defuse a trade dispute between the United States and the European Union over President Donald Trump’s imposition of tariffs on steel would be to exempt the bloc from the duties.

“We trust the European Commission, which is responsible for trade policy, and it has presented measures that we could implement,” Merkel said after talks with business leaders in the Bavarian city of Munich.

“But we prefer to have discussions first,” she added. “The best option would be (for the EU) to be excluded (from the U.S. tariffs) and the Commission has said that.”