CDU/CSU and SPD finalized their 140-page coalition agreement after days of intense negotiations, with details emerging throughout the morning. The parties announced ministerial distributions with CDU securing Interior and Foreign ministries while SPD claimed Defense and Finance. Merz is expected to become Chancellor by May 7th.

Economic news was dominated by escalating trade tensions. China responded to Trump's 104% tariffs with 84% counter-tariffs, sending markets lower again. By afternoon, the EU approved its first counter-measures against US goods. Trump unexpectedly announced a 90-day tariff pause for most countries while simultaneously increasing tariffs on Chinese goods to 125%.

Politically significant was an INSA poll showing AfD surpassing Union parties for the first time nationally, reaching 25% support. This historic milestone occurred precisely as Germany's traditional parties were cementing their coalition government, highlighting the political polarization facing the country.