U.S. President Donald Trump said he could impose steep tariffs on the European Union or even curb trade with the bloc if Brussels moves ahead with plans to make Canada the EU’s first-ever “associate member.”
Speaking to reporters after landing in North Carolina, Trump called the idea “laughable” and said Canada had been a “terrible trade partner.” He added that if he viewed the move by European leaders as a “hostile act,” he would respond with “very serious tariffs” or stop trading with Europe in a range of areas.
The warning came after European Commission President Ursula von der Leyen said the EU was prepared to open the door for Canada to become the first associate member of the 27-country bloc. That category does not currently exist in EU treaties, meaning any such arrangement would have to be created and ratified by member states.
The proposal reflects an effort by Brussels and Ottawa to deepen ties. It also marks a notable shift in the EU’s stance, after the bloc reacted coolly in May to Germany’s proposal to give Ukraine a similar associate membership status.
In her annual State of the European Union address in Strasbourg, Ursula von der Leyen said the bloc wanted to take relations with Canada “to the highest level possible.” Canadian Prime Minister Mark Carney, who attended the speech, has previously said Ottawa was interested in a “unique security and economic alliance” with Europe, but not full membership.
Canada has been trying to diversify away from the United States after months of escalating trade tensions and the collapse of bilateral trade talks. Trump has already imposed a 50% tariff on Canadian goods and plans later this month to ban imports of Canadian dairy, alcohol and autos, prompting retaliation from Ottawa.
James Lindsay, a senior fellow at Council on Foreign Relations, said Washington and Ottawa may still find a way out of the current trade war, but Canada is likely to keep reducing its exposure to U.S. economic pressure.
Von der Leyen’s pitch includes cooperation on manufacturing, integration of defense-industrial bases, a tech alliance, energy, artificial intelligence and Arctic policy. Canada is already the only non-European country in the EU’s SAFE instrument, which gives Canadian firms preferential access to defense procurement.
Canada also has a free-trade agreement with the EU that removes tariffs on roughly 99% of goods, although the deal still requires ratification by 10 EU states. Any new U.S. tariffs on the EU would test the trade framework Washington and Brussels struck last year, which set a 15% tariff ceiling on most EU exports to the U.S.
Brussels has not said whether it will proceed with the associate-member proposal in the face of Trump’s threat. EU member states, several of which were reportedly blindsided by the announcement, have also yet to respond publicly to Washington’s warning.
