U.S. President Donald Trump has threatened the European Union with “very serious” tariffs and a possible restriction of trade after a proposal to make Canada the bloc’s first associate member.
The remarks were made on September 16 in North Carolina. Trump called the idea “laughable” and suggested Washington could treat it as a “hostile act” amid his trade war with Canada.
“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,” he told reporters. “If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe.”
Earlier the same day, European Commission President Ursula von der Leyen, in her annual State of the European Union address in Strasbourg, proposed that Canada become the bloc’s first associate member. Canadian Prime Minister Mark Carney was present. Von der Leyen spoke of the need to “reimagine partnerships” and create “a common prosperity and economic security space.”
No such status currently exists under EU treaties. Any new form of association would require the consent of all 27 member states. According to European officials, the idea is not full membership but a deeper partnership on trade, defense, technology, energy and the Arctic beyond the existing CETA trade agreement.
Carney had previously said Ottawa wants a “unique alliance” with Europe rather than EU membership. Canada is looking for alternatives amid a sharp cooling of relations with the United States: Trump has imposed 50 percent tariffs on a wide range of Canadian goods, threatened bans on dairy, alcohol and automobiles, repeatedly suggested making Canada the 51st state, and called it a “terrible trade partner.” About 70 percent of Canadian exports go to the United States.
The Brussels proposal and Washington’s response raise the risk of a new transatlantic trade conflict. A Canada–EU summit is planned for late October, when the two sides intend to spell out the format of closer cooperation.
