NATO is central to Germany's defence despite tensions: Angela Merkel

Germany's Chancellor Angela Merkel gestures as she addresses the audience during a news conference at National Palace in Mexico City, Mexico June 9, 2017. REUTERS/Carlos Jasso - RTS16G03

NATO remains of central importance to Germany's defence despite tensions within the alliance, German Chancellor Angela Merkel said on Thursday.

In May, president Donald Trump singled out Germany as a member of North Atlantic Treaty Organisation that was not doing enough to contribute fully to the organization.

"It is no secret that the transatlantic alliance is under strain at the moment but we are convinced that the alliance remains central to our common security," Merkel said in a speech to parliament.

She also warned that Europe must keep talking to the US to avoid a trade war.

Trump threatened earlier this month to escalate a trade standoff with Europe by imposing a 20 percent tariff on all US imports of European Union-assembled cars.

Merkel also said an offer to Russia of a dialogue on ending the conflict in eastern Ukraine remains on the table.