Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
Shift newsletter

Germany steps up as ally in fight against U.S. auto tariffs

Across the world from the trade barbs issued in the White House rose garden, Canada’s auto industry is striking deals in Germany’s biergartens. 

More Canadians than ever—over 1,000—are attending this week’s industrial trade fair, Hannover Messe, where their booths span 5,000 square metres. As tariffs threaten to pulverize the North American auto-trade corridor, many are hoping that the European Union, led by auto giant Germany, will emerge as a reliable trade partner. 

Shift newsletter

Germany steps up as ally in fight against U.S. auto tariffs

Canada and its auto tech get a warm reception at one of Europe’s biggest trade fairs

By Anita Balakrishnan
German Chancellor Olaf Scholz talking with two other men in suits at an industrial fair booth with a Canadian flag in the background.
German Chancellor Olaf Scholz described Germany and Canada as a "perfect match" in a speech at the Hannover Messe industrial fair. Photo: Getty Images/Moritz Frankenberg
Apr 3, 2025
A A
A Small A Medium A Large
Share

Share

Across the world from the trade barbs issued in the White House rose garden, Canada’s auto industry is striking deals in Germany’s biergartens. 

More Canadians than ever—over 1,000—are attending this week’s industrial trade fair, Hannover Messe, where their booths span 5,000 square metres. As tariffs threaten to pulverize the North American auto-trade corridor, many are hoping that the European Union, led by auto giant Germany, will emerge as a reliable trade partner. 

“We’ve got willing partners overseas to make up for the difference after tariffs come through from the U.S.,” said Ontario Economic Minister Vic Fedeli. “They trust our integrity. All of this is in contrast, according to them, to how they feel today about the United States. They see that, so far, Canada has borne the brunt.” 

Related Articles

Freight train with colorful shipping containers travels through a grassy, hilly landscape on a clear day.

Inside the great untangling of Canada’s internal trade mess

By Catherine McIntyre and Joanna Smith
A worker in a white shirt and baseball cap works on the front of a Honda vehicle in an industrial setting with yellow safety lines on floor. A "Do Not Walk Through Here" sign is in the foreground.

Canada’s auto industry needs a reliable new trade partner. Enter Japan

By Anita Balakrishnan

In the expo’s opening remarks, outgoing German Chancellor Olaf Scholz told global manufacturing leaders that it was unusual for the event to get so political. But he went on to defend open markets, calling it “hardly imaginable” that Canada has felt the need to protect its sovereignty. Canada and Germany, on the other hand, were a “perfect match,” he said.

“Canada is not a 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 during the Hannover Messe opening ceremony. “We stand by your side.”

Scholz noted that Canada’s exhibit at the fair included “key technologies in which we invest massively here in Germany,” and which the country is prepared to support—not only with private capital but also with public funds.

The hope is that the comments turn into action, as both countries feel the U.S. is sucker-punching their auto sectors with tariffs. European auto stocks have fallen since Donald Trump announced auto-sector specific tariffs on March 26. Mercedes has reportedly hatched tariff contingency plans to pull its entry-level models out of the U.S. market. Franz Loogen, who leads the regional automotive association E-mobil BW, said this week that the global industry faces “massive changes” in technology and trade conditions, making German-Canadian relations of “vital interest.” 

While Canada symbolically swung open the door to the German auto sector with Volkswagen’s battery plant in southwestern Ontario, struggles at Sweden-based Northvolt and Belgium-based Umicore have cast doubt on what was shaping up to be a key trade partnership with the EU.

Fedeli said the province had meetings with Volkswagen this week; he would not disclose details, but said he was encouraged that two of VW’s Canadian executives have purchased homes in St. Thomas, Ont., where the facility is being built. In the meantime, he said, Ontario is set to unveil support programs for autoworkers who will be affected by U.S. tariffs, and ramp up its international trade missions. 

Canadian battery-material companies like Nano One fielded questions during the expo from German auto companies about Canada’s EV supply chain, while the investment development agency Edmonton Global has been involved in talks focused on critical minerals, hydrogen infrastructure and Canada’s AI institutes. Jayson Myers, CEO of the Canadian manufacturing association NGen, said he has organized meetings with Mercedes for 15 Canadian firms, and had heard of another Canadian company in negotiations for a multimillion-dollar deal with an investor.

Siemens was among the first multinationals to announce a Canadian investment during the event: a $150-million R&D centre that Siemens Canada CEO Faisal Kazi said will use AI simulations to reduce scrap rates in the battery sector.

“For Germany, and for a company like Siemens, it’s very important for us to invest in countries where the value system is aligned,” Kazi said, “and we feel that the German values and the Canadian values of respect, of inclusiveness, are aligned.” 

#Canada-U.S. trade #climate #economy #Germany #Hannover Messe #Mercedes #Siemens #tariffs #Volkswagen

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

German Chancellor Olaf Scholz talking with two other men in suits at an industrial fair booth with a Canadian flag in the background.

Photo: Getty Images/Moritz Frankenberg

Most Popular This Week

A shot of Mark Carney standing in a dark suit in front of a large, red excavator on a construction site. Carney is looking behind him, off-camera.
News

Canada needs an investment ‘hub’ as Carney steps up push for foreign money, says federal agency

By David Reevely
Construction workers walk across a deck as a crane lifts a large bundle of steel rebar into place at a construction site.
The Big Read

Inside Bell’s all-Canadian plan to power the country’s AI future

By Murad Hemmadi
A row of trucks pulling white freight trailers lined up on a bridge. The Canadian and U.S. flags stand on the river shore below the bridge, and the prow of a ship is visible on the right side of the frame.
News

Trump renews trade attack on Canada, slapping 50% tariffs on a slew of exports

By David Reevely and Laura Osman
A shot of Sam Witherspoon in front of his laptop, looking pensively over the screen. He's wearing an olive-green hoodie.
News

The Canadian companies trying to break Palantir’s grip on intelligence software

By David Reevely

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Commentary

Carmichael: The hard work of breaking down internal trade barriers is starting to pay off

By Kevin Carmichael

Briefing

National Bank invests in AI firm Multiverse Computing’s US$570M fundraise

By Murad Hemmadi   |   Jul 27, 2026 | 3:00 AM ET

Cadillac Gold raises $385M in IPO

By Anita Balakrishnan   |   Jul 24, 2026

U.S. hits 60 countries, including Canada, with forced labour tariffs

By Laura Osman   |   Jul 24, 2026

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

The Big Read

Inside Bell’s all-Canadian plan to power the country’s AI future

By Murad Hemmadi   |   Jul 22, 2026
Construction workers walk across a deck as a crane lifts a large bundle of steel rebar into place at a construction site.
News

Citi sees Canada heating up in global capital shift

By Chaimae Chouiekh   |   Jul 16, 2026
News

The Canadian companies trying to break Palantir’s grip on intelligence software

By David Reevely   |   Jul 20, 2026
A shot of Sam Witherspoon in front of his laptop, looking pensively over the screen. He's wearing an olive-green hoodie.
News

Trump renews trade attack on Canada, slapping 50% tariffs on a slew of exports

By David Reevely and Laura Osman   |   Jul 20, 2026
A row of trucks pulling white freight trailers lined up on a bridge. The Canadian and U.S. flags stand on the river shore below the bridge, and the prow of a ship is visible on the right side of the frame.
News

Canada needs an investment ‘hub’ as Carney steps up push for foreign money, says federal agency

By David Reevely   |   Jul 23, 2026
A shot of Mark Carney standing in a dark suit in front of a large, red excavator on a construction site. Carney is looking behind him, off-camera.
News

Australia’s pension giant has $10B ready to invest in Canada. It wants something from Ottawa first

By Catherine McIntyre   |   Jul 21, 2026
Melbourne city center skyline with views towards the Evan Walker pedestrian bridge flanked by Eureka Tower and far left Crown Casino on Melbourne Southbank.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account