German Chancellor Olaf Scholz on Tuesday warned that the EU will jointly retaliate if US President Donald Trump moves forward with imposing tariffs on European products.
Addressing lawmakers in parliament, Scholz criticized US President Trump's threats to impose tariffs on European products, beginning with steel and aluminum.
"If the US leaves us no other choice, then the European Union countries will react as one. As the largest market in the world with 450 million citizens, we have the strength to do so," he said.
Scholz expressed hope that the US administration would change its stance and avoid sparking a cycle of tariffs and counter-tariffs.
"Trade wars always end up costing both sides prosperity," he said and underlined that the German government is taking steps to support German businesses through challenging times ahead.
"Even without a trade war, the tough competition from the US, China and other emerging regions of the world will continue to put our economy under enormous pressure," he said.
On Monday, Trump announced that the US would impose 25% tariffs on all steel and aluminum imports with no exceptions. The measure will affect imports from numerous countries, particularly impacting major trading partners like Canada, Mexico, and European nations who are key metal suppliers to the US market.
