As U.S. tariffs roil markets, Canadian businesses build on European ties at world trade fair
In a temptular exhibition center of Hanover, Germany, thousands of companies, of which 250 from Canada, are taking part in one of the largest fairs in the world focused on industrial technology and innovation.
Lowing stands and displays are intended to unleash the conversation, but much of the discussion concerned the US rates, which have chased the markets, compromised relationships and forced some companies to accelerate their push for new commercial partners.
“I was frightened, I was very nervous, but it was absolutely overwhelming to see the response and welcome we are receiving from European markets,” said Brad Sparkman, president of only innovative finishing only in Ontario.
While both Canada and the European Union (EU) take stock of the rates collected from the United States, their most important commercial partner, companies are trying to evaluate exactly how they will be affected and if they can mitigate some of the economic blows by strengthening other commercial relations.
Last Wednesday, the Trump administration introduced a 20 % rate through the edge on the EU and Thursday morning a 25 % amount on foreign cars entered into force, even on those made in Canada.
Cooling relationship with us customers
While Canada seems to have been saved in Wednesday’s announcement, it is already struggling with a 25 % tariff on some Canadian goods and 10 % on energy.
Prime Minister Mark Carley defined the rates for a tragedy for global trade. At the Hanover fair, businessmen claim to have been left confused, amazed – and even injured.
Sparkman, whose activity focuses mainly on the use of robotic technology to paint cars, fought tears while telling CBC News on how some of his US contacts are not so receptive to work together in the current climate.
“I feel as if we were losing an excellent family member,” he said. “The fact that we cannot continue to do business as we did once, saddens me.”
Brad Sparkman, owner of a company from Ontario specialized in the robotic car painting of cars, says that his company has ventured into the European market “and embraced us”.
Sparkman said he started venturing into the European market a few years ago, because he suspected that trade with the United States could become more expensive.
Now, to try to relieve the effects of rates, it is thinking of making more production in the United States and further expanding to Europe.
His operation, based in Orangeville and Peterborough, has collaborated with the Japanese automation company Fanuc and is doing some work in Germany, where cars and brands such as Volkswagen, Audi and Mercedes-Benz are the largest export.
More trade with the third largest world economy
More than 4,000 companies are involved in the Hanover Fair and about a quarter of them come from Germany, the third economy of the world. Canada is the partner country this year for the annual Expo, with the Canadian companies taking part alongside representatives of the provinces, some municipalities and universities.
In recent weeks, there was a peak of interest from Canadian companies trying to take part in the fair.
Jayson Myers, CEO of NGEN, without profit based in Ottawa focused on technological development in advanced production, said that 80 Canadian companies have entered in the last two months, a time when tariff problems become more dramatic.
“I don’t think we will ever replace our economic relations with the United States, but the problems in the last two months have really shown the urgency … to find new markets, find new customers, “he said in an interview with CBC News in Hanover.
The EU is the second largest commercial partner in Canada, following the United States in 2024, the block of 27 members exported $ 84 billion In the goods in Canada, while Canada exported $ 34 billion to the EU.
The EU-Canada global economic and commercial agreement (Ceta), which entered into force provisionally in 2017, regulates the trade between the two partners-but the agreement has not yet been ratified by 10 nations of the EU due to A series of concerns They held, including some around food safety and access to public supply contracts.
Germany, which ratified Ceta in 2022, saw exports to Canada reached almost $ 25 billion in 2023. Canadian exports reached just over a third.
Chris Wyatt, sales and marketing manager for Kubes Steel, a metal manufacturer based in Stoney Creek, Ontario, often exports produced in the United States, and said he believed that the States will probably remain a key customer despite the rates. He decided to establish a stand at the Hanover Fair because he hoped that there could be a European question for the products of his company.
Wyatt admits that there is not much opportunity now, but he said it could be there in the future while Europe moves to increase its defense expenses.
How protectionism could return against
Hartmut Rauen, Vdma’s executive deputy director, a German association of over 3,000 mechanical engineering companies, believes that Canada and Germany can collaborate more when it comes to green technology, automation and artificial intelligence.
While he understands that the United States have lost a high percentage of his manufacturing works, he said he did not understand the strategy of the Trump administration to try to increase investments through protectionism.
In the short term, he said, the United States will have to continue importing highly specialized German technologies, since its factories cannot produce this alone.
But with the rates, it will cost more – and Rauen said it thinks that there will be an obvious impact for consumers.
“It could end up in a disaster for the American economy and also for the world economy,” he said.
When on Sunday the German extroverted Chancellor Olaf Scholz visited the fair, he warned against the “misleading path of protectionism”, praised Canada and said Germany is with the “independent sovereign country”.
The visit of the German leader and some of the reactions of the German entrepreneurial community has been encouraging for the people present and experts in the sector hope that it could translate into the real market.
“There is no panel, no event I participated in this week in which there was no strong sign to defend it [Canada]”said Yvonne Denz, CEO of the German Canadian Chamber of Industry and Commerce.
“I hope my phone starts ringing next week and my mailbox will be done … intertwined with questions about what we can ask in Canada.”
