USA · updated 1h ago · 2 min read
Trump Threatens Tariffs Or Stop Trading With Europe Over Canada EU Associate Membership Plan
Trump threatens very serious tariffs or halting trade with Europe over Canada-EU associate plan. EU proposes Canada as first associate member to deepen defense, technology, energy, and AI cooperation.
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Trump tariffs over EU plan
U.S. President Donald Trump threatened to impose tariffs on the European Union or stop trading with Europe if the bloc proceeds with its plan to make Canada its first-ever "associate member."
“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 made the remarks after landing in North Carolina on Wednesday, saying, "If I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things."
The threat followed European Commission President Ursula von der Leyen backing the proposal in Strasbourg, France, where she told the European Parliament she wanted to "opening the door" for Canada to become the EU's first "associate member."
Canadian Prime Minister Mark Carney attended von der Leyen's annual State of the Union speech and was due to address the Parliament on Thursday, as trade tensions between Canada and the U.S. continued after talks collapsed last month.
EU-Canada pitch and definitions
Von der Leyen framed the EU-Canada push as a broader partnership beyond their existing trade deal, telling the European Parliament, "Europe and Canada believe in democracy."
The Reuters explainer said there is currently no such status as "associate member" set out in the European Union's treaties, and it noted that any arrangement would require EU member states to decide and would need ratification by all domestically.
Reuters also described what the relationship might involve, including joint work on manufacturing, a tech alliance, integration of defence industrial bases, the Arctic, AI, energy and critical minerals.
In parallel, the BBC reported that when asked about the plan, Trump called it "laughable" and said, "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."
What happens next for ties
The immediate stakes for Washington and Brussels hinge on whether the EU proceeds, as Reuters reported Brussels had not said whether it will proceed with the associate-member proposal in the face of Trump's threat.
“set a 15% tariff ceiling on most EU exports to the U.S.”
CNBC said any fresh 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.
The BBC added that "associate membership" does not currently exist and the process, if agreed, could take years, while noting that ten of the bloc's 27 members are yet to ratify a free-trade agreement struck with Ottawa nearly a decade ago.
Meanwhile, the EU chief and Carney were already positioning the relationship as a strategic alternative to tense U.S.-Canada ties, with the BBC reporting that Carney was in attendance in Strasbourg and due to address the parliament on Thursday.