President Donald Trump has threatened to impose heavy tariffs on the European Union or restrict trade with the bloc if it moves forward with a proposal to make Canada the EU’s first “associate member.”
Trump made the comments Wednesday while traveling to an event in North Carolina, calling the proposal “laughable” and warning that Washington could respond if he considers the move hostile to U.S. interests.
“If they do that, if I think it’s at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things,” Trump told reporters. He added that if the proposal were made with “bad intention,” the United States could impose “very heavy tariffs” on Europe.
The comments came one day after European Commission President Ursula von der Leyen proposed that Canada become the European Union’s first associate member during her annual State of the Union address in Strasbourg, France. Canadian Prime Minister Mark Carney was present for the speech.
Von der Leyen said the EU and Canada should deepen their relationship beyond their existing trade ties and build what she described as an “Alliance for the Future.” The proposed cooperation could cover technology, artificial intelligence, critical minerals, energy, manufacturing, defense, cybersecurity and Arctic projects.
The proposed associate-member status would be a new arrangement for the EU, and important details—including whether such a member would have voting rights or access to EU institutions—have not yet been defined. The proposal would not amount to full EU membership.
Carney has welcomed closer relations with Europe. Speaking to the European Parliament on Thursday, he said stronger ties with Europe could help Canada diversify its economic relationships and protect its sovereignty.
The EU and Canada already have a major trade relationship through the Comprehensive Economic and Trade Agreement (CETA), which has been provisionally applied since 2017. Their cooperation has also expanded into defense, energy and critical supply chains.
The latest dispute comes amid broader trade tensions between Washington, Ottawa and Brussels. European and Canadian officials are seeking to strengthen economic and security cooperation while the Trump administration continues to use tariffs and trade restrictions as tools in its international economic policy.
The proposal is expected to face further discussions among EU member states before any formal arrangement can move forward.