The president has made the claim as he defends his administration's new "zero tolerance" policy that calls for the criminal prosecution of all adults apprehended attempting to cross the USA border illegally.
As a model, she pointed to Berlin's refugee deal with Turkey in the press conference.
Merkel has come to this weakened summit and under enormous pressure because of fracture of conservative bloc she runs and which forms great coalition of German government along with Social Democrats. She has also rejected her minister's threat in a bid to reaffirm that she holds the reins when it comes to government policies.
He also said Paris and Berlin are in favour of deals that would allow European Union member states to reject at their borders asylum-seekers already registered elsewhere in the bloc, usually their first port of call.
On Monday, Germany's Interior Minister Horst Seehofer vowed to close the border to migrants by July if Merkel fails to find solutions with European partners. Merkel isn't against a stricter border regime, but wants this to be part of a European agreement, which she hopes to achieve at an EU summit at the end of this month.
By 2017 those numbers had dropped to pre-crisis levels even though almost a million asylum seekers had settled in Germany and continue to live in the country.
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"Germany's Sueddeutsche daily praised the partnership, saying that "with unrest so rife across the EU, Europe can consider itself lucky if it is able to find any common ground at all".
On Monday, Trump tweeted that crime in Germany "is way up" as he assailed what he called a "big mistake" by Europe "in allowing millions of people in who have so strongly and violently changed their culture!"
"US President embarrasses himself with a tweet full of lies", read the headline of the Spiegel Online, a widely read German-language news website, which linked Trump's remarks to the controversy surrounding his own migration policy. So Seehofer "graciously" gave her two more weeks, upon which Merkel stated that if her minister acted unilaterally, she would tell him where to get off. Merkel has common sense on her side when she argues that there has to be a European fix.
Merkel said the primary goal of the budget, which could go into effect in 2021, would be to fund "investments and convergence measures".
"Turning away migrants at our borders at the heart of Europe will lead to negative domino effects that could hurt Germany and put into question European unity", she has warned.
The anti-immigrant Alternative for Germany (AfD) accused Chancellor Angela Merkel's Bavarian allies on Tuesday of copying its tough line on dealing with migrants, as the parties vie for votes before elections in the southern state in October.
"Member States should take all necessary internal legislative.to counter such movements", the text said in an indirect response to German Interior Minister Horst Seehofer.
"We are convinced that Germany needs a reversal in its asylum policy", said Markus Soder, a member of Seehofer's party and the governor of Bavaria.