US President Donald Trump has said the European Union (EU) allowing Canada to become an associate member could be a “hostile act” and threatened to respond to the proposed move by imposing more tariffs on the bloc.
Trump on Wednesday warned he would impose heavy tariffs on Europe if he judged the bloc’s intentions to be unfavourable, while leaving the door open if they were not.
“If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe.” He also suggested Washington could cut off trade with Europe in certain areas.
Trump called the prospect of Canada joining the EU “laughable” and called America’s neighbour a “terrible trade partner”.
His response came after the EU Commission president, Ursula von der Leyen announced Canada and the EU would build on their existing free trade agreement, known as CETA, with a broader “Alliance for the Future” aimed at creating “a common prosperity and economic security space”.
Speaking in her annual State of the European Union address on Wednesday, von der Leyen cast that closer relationship as rooted not just in trade but in shared democratic values.
“Above all, dear Mark, Europe and Canada believe in democracy,” von der Leyen said to Carney, who received a standing ovation at the European Parliament in Strasbourg, France. He is due to address the Parliament on Thursday.
Trump’s tariffs and repeated talk of making Canada the 51st state have soured the relationship between the North American neighbours.
Canada is seeking to reduce its dependence on the United States, the destination for roughly 70% of its exports, and Prime Minister Mark Carney has called for a “unique alliance” with the EU.
Trump rupture accelerated Canada’s turn toward Europe
The turn toward Europe had also been long coming. In a closely watched speech at the World Economic Forum in Davos in January, Carney urged middle powers to work together to increase their leverage in an era of great-power rivalry.
“When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered,” Carney said.
Thus far, Ottawa has retaliated against US tariffs and rejected trade terms Carney says would weaken its sovereignty.
Continuing to try to exert pressure, Trump on Wednesday signed a memorandum directing the US government to remove Canadian goods from the federal procurement system, which the White House said was in retaliation for the Canadian government’s “Buy Canadian” policy, expressing a preference for goods from its own country.
The White House called that policy unfair and said in a fact sheet explaining the memo that “President Trump is taking action to hold Canada accountable for its continued unreasonable and discriminatory treatment of U.S. goods, which has burdened and disadvantaged hard-working Americans.”
For its part, the EU has taken a different course with Washington, reaching a trade agreement that set a 15% tariff ceiling on the vast majority of EU exports while Europe eliminated tariffs on US industrial goods.
Canada has already joined EU’s defense procurement program
Jonathan Wilkinson, Canada’s ambassador-designate to the EU, said Wednesday that Ottawa had discussed associate membership with European officials before von der Leyen’s speech and “knew that that was something that was on the table.”
According to Wilkinson, Canada had talked to the EU about an “Alliance for the Future”, while European officials had raised associate membership.
Wilkinson said Canada is not seeking full EU membership because it would require surrendering some sovereignty. Instead, Ottawa wants “to get as close as we possibly can” to the bloc in a way that strengthens Canadian sovereignty rather than diminishes it, he said.
Carney’s office welcomed von der Leyen’s proposal, saying Canada was deepening ties with the EU “to strengthen our sovereignty” and supported a move beyond CETA.
Von der Leyen said the expanded partnership would cover advanced manufacturing, technology, defense production, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security.
“This is a partnership not against anyone else, but for our common strength,” she said. “In short, we want to bring the relationship with Canada to the highest level possible.”