German Chancellor Olaf Scholz reaffirmed his commitment to defending free trade as the cornerstone of economic prosperity after U.S. President Donald Trump signaled potential tariffs on trade partners. Speaking at the World Economic Forum in Davos, Switzerland, Scholz emphasized that isolation undermines prosperity. “We will defend free trade as the basis of our prosperity, in collaboration with our partners,” he stated.
“Europe is dedicated to maintaining fair and open global trade,” Scholz added.
As Germany approaches its February 23 elections, Scholz highlighted the importance of maintaining strong EU-U.S. relations. However, he noted that it would require “cool heads” to navigate the potential disruptions stemming from Trump’s administration. Trump, in his inaugural address, had vowed to impose duties on foreign nations to benefit U.S. citizens, with plans to potentially introduce a 25% tariff on Canada and Mexico starting February 1.
In addition to trade measures, Trump signed several executive orders, including withdrawing the U.S. from the Paris climate agreement, declaring a national emergency at the southern border, and renaming the Gulf of Mexico to the “Gulf of America.”
Scholz on Trump’s “America First” Approach
Scholz acknowledged Trump’s “America First” mantra, asserting that it is reasonable for leaders to prioritize their own nation’s interests. However, he also stressed that cooperation and mutual understanding often align with national self-interest.
The German leader, who remains calm in his public demeanor, stated that strong U.S.-Germany relations are crucial, calling the U.S. “our closest ally outside of Europe.” He pledged to maintain these ties, citing his positive early discussions with Trump and ongoing communication with U.S. advisors. Despite this, Scholz predicted that Trump would continue to stir uncertainty in various policy areas, including energy, climate, trade, and foreign affairs.
Maintaining Transatlantic Ties and European Strength
Scholz argued that transatlantic cooperation remains essential for global peace and economic growth but also stressed the need for Europe to strengthen its own resilience and competitiveness. “As a community of over 450 million Europeans, we have the economic clout,” he remarked, noting that Germany is the third-largest global economy.
While striving to keep diplomatic relations positive with Trump, Scholz also condemned the controversial support of tech mogul Elon Musk for far-right movements. Musk’s recent actions, including gestures that some interpreted as a Nazi salute, were criticized by Scholz, who said that while free speech is protected in Europe, supporting extreme-right ideologies is unacceptable.
Musk, known for his outspoken remarks on social media, responded with further expletives on his platform, X, after Scholz’s comments.