German-Canadian Firms Rethink Strategy Amid U.S. Tariffs
German-Canadian businesses shift focus to Europe and U.S. operations as trade tensions rise amid new U.S. tariffs and protectionist policies.
German Canadian Trade
By Elke Porter | Canadian German Business News | April 30, 2025
As trade tensions between Canada and the U.S. escalate under renewed tariff threats, German-Canadian companies are reevaluating their global strategies. Some are eyeing closer integration with the U.S. market to sidestep border duties, while others are leaning into European partnerships to reduce reliance on American trade.
Brad Sparkman, owner of a robotic auto-painting firm in Ontario, anticipated U.S. trade frictions years ago and began cultivating European clients. “They’ve embraced us,” Sparkman said, emphasizing that diversifying away from the U.S. was a strategic choice. He’s now expanding production ties with German manufacturers, including work in the EU with automation giant FANUC.
Meanwhile, Jayson Myers, CEO of Ottawa-based innovation agency NGen, noted a surge of interest from Canadian firms looking to hedge against North American instability. “Eighty companies signed up in just two months,” he said, attributing the spike to growing unease over tariffs.
While many still see the U.S. as indispensable, companies like Kubes Steel are exploring European prospects, spurred by events like the Hannover Messe. “There’s not much opportunity now,” admitted head of sales Chris Wyatt, “but with Europe's increased defence spending, that could change.”
The EU’s growing trade with Canada — including nearly $25 billion in German exports to Canada in 2023 — is boosted by the provisional EU-Canada trade pact, CETA. Though not fully ratified, it enables smoother trade for forward-looking firms.
However, some companies are still considering moving parts of their operations to the U.S. to bypass tariffs entirely, a move spurred by Trump’s recent 25% auto tariff announcement. Stellantis, impacted immediately, halted production for two weeks, citing tariffs as a primary cause.
The broader message is clear: German-Canadian companies are adapting quickly — either by deepening U.S. integration or by pivoting to Europe. But both options reveal how protectionism, and what some see as short-sighted economic nationalism, can lead to global realignments with long-term consequences.
#German Canadian Trade #US Tariffs #EU Canada Relations #CETA #Manufacturing Shift #Auto Industry News #Trade Diversification #Global Business #German Canadian Business News #Elke Porter
Connect with Elke at Westcoast German Media or on LinkedIn: Elke Porter or contact her on WhatsApp: +1 604 828 8788
Members Discussion