Trump Threatens Trade Measures on Europe if Canada’s Potential EU Associate Membership Done as a ‘Hostile Act’

U.S. President Donald Trump says that if Canada joining the European Union as a proposed associate member is intended as a “hostile act” against the United States, he may impose tariffs on Europe or halt trade with the bloc.

Trump was asked about European Commission President Ursula von der Leyen’s proposal for Canada to become an associate member by reporters Sept. 16 in Charlotte, N.C., while on the way to a campaign rally in support of Republican Senate candidate Michael Whatley.

“I think it’s laughable,” Trump said, while calling Canada a “terrible trade partner.” He added that if the intention behind the initiative is a “hostile act,” he would impose consequences.

“If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe,” Trump said, adding that he may even fully cut off trade with the bloc in some areas.

Earlier on Sept. 16, Trump signed an order to enact a previouscommitment to ban Canadian goods from certain U.S. federal procurement contracts.

‘Associate Member’

Trump’s reaction comes after von der Leyen said she would like to create a new pathway for Canada to become the EU’s first “associate member” during her Sept. 16 state of the union address in Strasbourg, France, which Canadian Prime Minister Mark Carney attended.

“We want to bring the relationship with Canada to the highest level possible,” von der Leyen said.

She added that the proposed associate member status could include closer collaboration in numerous areas including trade, defence, artificial intelligence, and technology.

In stating her wish for Canada to join the bloc for reasons including economics, security, and shared values, von der Leyen said Europe’s push for stronger partnerships was also a response to “the fracture in the international rules-based system,” adding that closer ties with Canada would be “a partnership not against anyone else, but for our common strength.”

Carney hasn’t directly rejected becoming an “associate member” of the bloc, but has said his country wouldn’t become a “member,” and that it’s seeking a “unique alliance.”

“We share the same values. We have the same priorities, and we have very complementary strengths,” Carney said. “We’re stronger together, and this is at a time when the world’s more dangerous and divided, and friends need to stick together at these times.”

Carney’s office said Sept. 16 that he “welcomed” von der Leyen’s proposal and supported moving beyond trade agreements to a closer relationship.

Canadian Ambassador to the EU Jonathan Wilkinson confirmed that an associate membership for Canada has been discussed by both sides.

Canada became the first non-European nation to join the EU’s Security Action for Europe defence procurement program this past February, giving Canadian firms access to Europe’s defence procurement contracts.

Canada–US Trade Tensions

Trump’s comments come in the midst of an ongoing trade dispute between Washington and Ottawa.

Talks between the two sides broke down Aug. 21 after Ottawa walked away from trade negotiations, with both sides blaming the other for last-minute changes in demand.

After the negotiations collapsed, previously announced U.S. tariffs of 50 percent on roughly US$20 billion in Canadian goods took effect Aug. 22, followed by Canada imposing retaliatory tariffs on approximately the same value of U.S. products on Sept. 8.

On Sept. 8, Washington announced an import ban on most Canadian alcoholic beverages as well as certain Canadian dairy products and motorcycles set to go into effect Sept. 29, and Trump said he’d ban Canada from certain U.S. federal procurement contracts, which he made official on Sept. 16.

While criticizing Canada’s trade practices, Trump said on Sept. 12 that a deal between the two countries could be reached “fairly soon.” Carney said this week that he welcomes that, adding that his government is “ready to sit down and negotiate” with Washington.