Facing US tariffs, Canadians hunt for business in Europe

Facing US tariffs, Canadians hunt for business in Europe

Canadian companies were hoping to seize business opportunities in Europe at the Hanover Fair
Canadian companies were hoping to seize business opportunities in Europe at the Hanover Fair. Photo: RONNY HARTMANN / AFP
Source: AFP

With his small steel mill facing hefty US tariffs, Canadian businessman Chris Wyatt is hunting for new European customers at the world's biggest industrial technology fair in Germany.

"There's uncertainty in the markets so big projects are being shelved or they're just not moving ahead," said sales director Wyatt, handing out flyers at his stand, alongside big players in robotics and factory machinery.

This week's Hanover Fair, which has attracted more than 4,000 exhibitors from around 60 countries, takes place as US President Donald Trump gears up to announce a wave of "reciprocal tariffs", ratcheting up global trade tensions even further.

And this year's guest of honour is Canada -- a clear signal that Europe stands with Ottawa as it faces not just hefty duties from the United States, its largest trading partner, but also Trump's threats to annex the country.

"Welcome to Germany, dear Canadian friends," German Chancellor Olaf Scholz said Sunday ahead of the fair's opening. "We stand by your side."

Read also

Trump says will be 'kind' with tariffs as deadline looms

His comments highlighted warming ties between Europe and Canada amid Trump's sabre-rattling -- with some even joking that Canada should join the EU.

For Wyatt the impacts of Trump's trade war are already being felt.

The president slapped 25-percent tariffs on US steel and aluminium imports on March 12, and even briefly threatened to hike the duty to 50 percent on Canadian imports.

Wyatt's Ontario company Kubes Steel currently exports 80 percent of its production, specialised steel for a range of industries including the nuclear sector, to the United States.

"Of course, we are concerned," said Wyatt, whose company employs about 80 people. "People aren't spending money at this point."

Still he is hopeful the trade fair will bring new opportunities -- he managed to make contacts with prospective new clients, including Spanish transport companies.

Tariff 'own goal'

In his opening address, Scholz called for stronger ties between the European Union and Canada as the two sides "complement each other" when it comes to making machinery, artificial intelligence, renewable energy and electric vehicles.

Read also

Asian markets edge back but Trump tariff fears dampen mood

Closer ties with G7 economy Canada also stand to benefit Europe and in particular Germany, which will be hit hard by new 25-percent US duties on imports from the auto sector, one of the country's flagship industries.

The auto duties are bad news for Milko Konzelmann, whose German family-run business producing plastic car parts and valves makes around a quarter of its sales in the world's biggest economy.

German Chancellor Olaf Scholz posed with an ice hockey stick as he toured the Hanover Fair
German Chancellor Olaf Scholz posed with an ice hockey stick as he toured the Hanover Fair. Photo: RONNY HARTMANN / AFP
Source: AFP

"I will lose money," he said, adding that he was waiting to see how long Trump would keep pushing tariffs, which he described as an "own goal".

But if there is no change, the company will focus more on Asia.

Shifting production to the United States to avoid tariffs would "take years" and is a "big decision for a medium-sized company" with just 300 employees, he said.

Despite the hostility towards Trump in Europe, American companies, including Dell, IBM, Microsoft and Nvidia, were out in force in Hanover, with some not shy about speaking in favour of the president's drive to rebalance US trade with the EU.

Read also

World economies brace for Trump tariffs ahead of deadline

Manufacturing powerhouse Germany stands out when it comes to US complaints on trade -- Europe's biggest economy logged a record trade surplus with the United States last year and huge numbers of its goods, from cars to pharmaceuticals, are shipped to America.

Canada was the guest of honour at this year's Hanover Fair
Canada was the guest of honour at this year's Hanover Fair. Photo: RONNY HARTMANN / AFP
Source: AFP

"We have to be able to compete and we can't sit there, playing a game where they (Europe and Asia) sell to us but we can't sell to them," Ryan Mosher, from small US company Conrad that makes air compressor parts, told AFP.

Still, he concedes trade tensions will hit his business: "I'm going to lose some money, that's for sure."

Texas businesswoman Suzanne Stewart also said the tariffs would impact her company, which makes metal mesh, as it needs to keep importing some materials from Asia.

"In reality not everything is available in the US," she said.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.