UPDATE - EU will jointly retaliate if US imposes tariffs, Germany’s Scholz warns Trump

UPDATES WITH MORE COMMENTS FROM GERMAN CHANCELLOR, ADDS BACKGROUND

By Anadolu staff

BERLIN (AA) - 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 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.

Scholz, who faces a re-election challenge on Feb. 23, also criticized Trump's controversial foreign policy moves in his first month in office, and warned of challenging times ahead for Germany.

“The American president has caused irritation with his statements about Greenland, Canada, the Middle East and Panama, and most recently he has threatened punitive tariffs on steel and aluminum,” he said.

Scholz also referred to domestic challenges due to the rise of the far-right AfD party. He renewed his call for citizens to support his Social Democratic Party (SPD) and other centrist democratic parties that have taken a clear stance against extremists.

"Let me be clear—I won't promise you the impossible. But I do promise that we will overcome these challenges together, and we will succeed if our country's political center remains strong," he stressed.

Recent polls, with just two weeks until the elections, show Scholz's SPD in third place with 15.5% voter support. Opposition leader Friedrich Merz's center-right Christian Democrats (CDU/CSU) lead with 30%, though they would need a coalition partner to form a government. The far-right AfD holds second place at 22%.

Political analysts predict that a coalition between the Christian Democrats and Social Democrats is the most likely outcome following the parliamentary elections.