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U.S. President Donald Trump threatened on Wednesday to cut trade with the European Union after the bloc proposed to make Canada its first ever associate member.
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EU chief Ursula von der Leyen raised the prospect a day before Canada’s leader Mark Carney was due to address the European Parliament.
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Her pitch comes as both Canada and the European Union seek to pivot away from an aggressive United States under Trump’s leadership.
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“I think it’s laughable,” Trump told reporters when asked about the plan.
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“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.”
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He added: “If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe, which is a possibility.”
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Von der Leyen pitched closer cooperation on tech, defence and energy to Carney, who became the first non-European head of government to attend the annual “State of the European Union” speech.
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The German told the European Parliament in Strasbourg that, as democracies face a “fracture in the international rules-based system,” Brussels and Ottawa needed to pull closer together.
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“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen told the Canadian prime minister, drawing a standing ovation in the chamber.
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Carney has been pursuing closer ties with the European Union as Canada gets drawn ever deeper into a trade war with the United States.
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He is set to address the parliament on Thursday, with his visit meant to act as a catalyst ahead of an EU-Canada summit in Montreal next month.
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Von der Leyen said it was time to move from cooperation based on trade to a broader “alliance for the future” and “bring the relationship with Canada to the highest level possible.”
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“We will work on intelligent manufacturing. We will create a tech alliance. We will integrate defence industrial bases. We will make the Arctic a flagship joint project,” she said.
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She listed energy, critical minerals, batteries, AI, cyber and economic security as other fields of cooperation.
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“This is a partnership not against anyone else, but for our common strength,” she said.
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But both the EU and Canada have been buffeted by tariffs and territorial threats from the U.S. and competition from China.
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“In a more dangerous and divided world, Canada is forging stronger relationships with trusted partners,” Carney’s office said in a statement.
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While EU treaties do not envision the possibility of becoming an “associate member,” the idea was first floated by German Chancellor Friedrich Merz this year for Ukraine.
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Under that plan, which met a cold reception from a country pushing for full membership, Ukraine would have been allowed to attend the bloc’s summits and have a representative in the European Commission.