Article content
(Bloomberg) — Supply Lines is a daily newsletter that tracks global trade. Sign up here.
Article content
Outgoing German Chancellor Olaf Scholz expressed solidarity with Canada to fend off President Donald Trump, who introduced tariffs against the northern neighbor and has repeatedly said it should become part of the US.
“Canada is not a federal state of anyone. Canada is a proud, independent nation. Canada has friends all over the world – and especially many of them here in Germany and Europe,” Scholz said at the opening ceremony of the Hanover Messe trade fair. “We stand by your side.”
Article content
Trump’s trade actions, along with suggestions that Canada become the 51st US state, have strained ties between the North American neighbors. Trump has announced a 25% tariff on imported automobiles and auto parts, called a “direct attack” by Canadian Prime Minister Mark Carney.
Canada’s leader said the move was a violation of the US-Mexico-Canada trade accord known as USMCA, which Trump negotiated during his first term in the White House as a replacement for the previous NAFTA pact.
Carney has called a national election for April 28, a contest in which the nation’s sovereignty and US threats against its economy have become a dominant issue. In a tight race, his Liberal Party has a slight edge over the Conservative Party in a number of recent polls.
Article content
In a broader show of dissent against US policies, Scholz criticized tariffs the Trump administration plans against Europe, saying any such move would trigger retaliation and leave both sides worse off.
“I therefore say to the US: cooperation remains Europe’s goal,” Scholz said. “But if the US leaves us no choice, as with the tariffs on steel and aluminum, we as the European Union will react as one.”
Trump’s threats to impose punitive tariffs on Europe, seize territories and pull military support from the region have irked European governments. Earlier this month, the US imposed a 25% tariff on steel and aluminum imports, which led the EU to propose its own retaliatory duties on up to €26 billion of politically sensitive American goods.
Trump is expected to unveil a broad slate of reciprocal tariffs against US trading partners on April 2.
Share this article in your social network
