German Chancellor Olaf Scholz has pledged to champion free trade, emphasizing its critical role in global prosperity. Speaking at the World Economic Forum in Davos on Tuesday, Scholz responded to US President Donald Trump’s recent threats of tariffs and taxes on trade partners, stressing the importance of collaboration over isolation.
“Isolation undermines prosperity,” Scholz stated, underscoring Europe’s commitment to fair and open trade. He added that strong transatlantic ties are vital for global peace, security, and economic growth.
Scholz acknowledged Trump’s “America First” agenda, noting that while prioritizing national interests is understandable, mutual cooperation often serves those interests better.
During his inaugural address, Trump announced plans for significant trade duties and suggested imposing tariffs on Canada and Mexico as early as February. Additionally, his first day in office included executive actions such as withdrawing from the Paris climate accord and declaring a national emergency at the Mexican border.
Scholz urged calm, encouraging leaders to avoid reacting impulsively to every statement or tweet from Washington. “Cool heads are needed,” he said, emphasizing the need for measured responses to challenges in energy, climate, and trade policies.
While reaffirming Germany’s commitment to strong ties with the US, Scholz also stressed the importance of European resilience and competitiveness. “As a bloc of over 450 million people, Europe has the strength to assert itself,” he said, highlighting Germany’s position as the world’s third-largest economy.
Scholz took a firm stance against recent controversies involving Elon Musk, a prominent supporter of Trump, who has faced backlash for endorsing far-right ideologies. Scholz condemned Musk’s actions, emphasizing Europe’s intolerance for such extreme views.
“Freedom of speech is a cornerstone of our values, but supporting extremist positions crosses the line,” Scholz said. In response, Musk dismissed the criticism with a defiant social media post.
Despite the challenges, Scholz remains optimistic about navigating global uncertainties, reaffirming Europe’s determination to uphold its principles and partnerships.
