Merkel did not mention the exchange, saying only that she was very encouraged following her U.S. visit and adding that the EU's first priority was to complete work on a deal with Japan.
The newspaper quoted a senior German politician as saying that Trump had repeatedly asked Merkel about signing a bilateral trade deal, but was told such an accord could only be negotiated by the EU.
Upon returning from her visit to Washington, Merkel briefed her cabinet members on Trump's "very basic misunderstandings" on the "fundamentals" of the European Union and trade.
The White House said the two also discussed the conflicts in Syria and Yemen and the need for a peaceful settlement to the crisis in Ukraine.
However, a trade deal with Europe is far more lucrative for the USA than a deal with Britain.
Everytime she replied 'You can't do a deal with Germany, only the EU.
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"[Brexit campaigners] are voicing an opinion about what the United States is going to do, I figured you might want to hear from the president of the United States what I think the United States is going to do", Obama said on 22 April, 2016.
Merkel spoke with Trump by phone after the first of his soon-to-be blocked travel bans, to say she regretted his decision to attempt the ban and point out that "t$3 he... refugee convention requires the worldwide community to take in war refugees on humanitarian grounds".
This in turn led to a "realisation" in the White House that an European Union trade deal would be more important than a deal with Britain.
During the first three months of the administration, Ivanka Trump has strived to highlight issues relating to women's economic empowerment.
Post-Brexit Britain would be pushed behind Europe in the race to secure a US deal after Germany's Angela Merkel persuaded Trump that talks on a deal would be simpler than he thought, the newspaper said.
Apparently in his talks with Merkel in March, President Trump did not realise he could not make a deal with Germany alone.