Trump holds talks with Merkel, says he is not an isolationist

"My administration is in the process of rebuilding the American industrial base. A stronger America is in the interest, believe me, of the world as a whole," Trump told reporters at a joint news conference with the visiting German Chancellor Merkel.

Germany and the United States, he said, must work together towards fair and reciprocal trade policies that benefit people of both the countries.

"Millions of hard-working US citizens have been left behind by international commerce, and together, we can shape a future where all of our citizens have a path to financial security. The United States will respect historic institutions and we will also recognise the right of free people to manage their own destiny," Trump said.

On immigration, another issue dividing Merkel and the new US president, Trump said immigration was a "privilege" and not a "right."

Responding to a question, Trump refuted the impression that he is an isolationist.

"I dont believe in an isolationist policy. But I also believe a policy of trade should be a fair policy. The United States has been treated very, very unfairly by many countries over the years. Thats going to stop. But Im not an isolationist," he said.

"Im a free trader, but Im also a fair trader. Our free trade has led to a lot of bad things happening. You look at the deficits that we have, and you look at all of the accumulation of debt. Were a very powerful country. Were a very strong country," said the US President.

The two leaders addressed a joint press conference after their meeting at the Oval Office -- the first between them.

Trump agreed to attend the G-20 Summit in Germany later this year, Merkel said. The two leaders were to discuss the economic issues over lunch after the briefing.

"Were going to talk at some length over lunch about the issues. We say trade has to be rendered fairer. There has to be a win-win situation. We can talk about the details of that," Merkel said.

"Weve already seen today when we had an exchange with our CEOs and also with our apprentices what sort of potential we can tap, what sort of potential our two economies have," Merkel said.

"Its very moving to see, particularly meeting with these young people, what sort of work towards the future is being done by our companies there," she said, adding that the two countries would continue their cooperation on a number of issues.

Merkel said she had a very good first exchange of views with Trump and was looking forward to the talks over lunch.