U.S. President Donald Trump has warned that Washington could impose heavy tariffs on the European Union or restrict trade with the bloc if he views a proposal to deepen EU ties with Canada as hostile.
Trump called the proposal “laughable” on Wednesday and said the U.S. response would depend on the intention behind it.
“If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe,” Trump told reporters, also raising the possibility of stopping trade with Europe on some goods.
The warning followed European Commission President Ursula von der Leyen’s proposal to make Canada the EU’s first associate member, an idea she presented during her annual State of the European Union address in Strasbourg.
“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen told Canadian Prime Minister Mark Carney, who attended the address and is due to speak to the European Parliament.
Von der Leyen said the EU and Canada should broaden their relationship beyond trade to include technology, defence, energy, critical minerals, artificial intelligence, cybersecurity and cooperation in the Arctic.
The proposal comes as Canada seeks to strengthen ties with Europe while facing trade tensions with its biggest trading partner, the United States. Carney has pushed for closer relations with the EU as Ottawa seeks to diversify its economic partnerships.
The EU and Canada already have a free-trade agreement that removed most tariffs between them. Canada also became the first non-EU country to join the bloc’s defence loan programme this year.
However, “associate membership” has no established status under EU treaties, leaving the details of the proposal unclear. Any new partnership with a non-EU country would require approval from EU member states.
Von der Leyen said the proposed closer relationship was intended to strengthen cooperation between Canada and Europe, rather than target another country.
