U.S. allies, balancing defiance and conciliation as they seek to avoid President Donald Trump’s planned tariffs on steel and aluminum, are walking a line on how much ground to give on other White House trade grievances.

German Chancellor Angela Merkel said Monday she wanted to overcome the trade dispute through talks rather than retaliation, striking a more conciliatory tone on Mr. Trump’s plan than has come from European Union officials, who handle trade for Germany and the bloc’s 27 other members.

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