President Trump on Wednesday threatened to impose severe tariffs or halt trade with the European Union if the bloc moves forward with plans to make Canada an associate member, describing such a move as a potential "hostile act."
Speaking to reporters in North Carolina while campaigning for GOP Senate nominee Michael Whatley, Trump 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." He dismissed the notion of Canada joining the EU as "laughable" and reiterated his criticism of Canada as a "terrible trade partner" amid an escalating tariff dispute with Prime Minister Mark Carney.
Trump's remarks came in response to European Commission President Ursula von der Leyen's announcement on Wednesday that she wants Canada to become the EU's first-ever associate member. "I would like to work with you on opening the door for Canada to being the first associate member of the European Union," von der Leyen said during her annual State of the Union address in France, with Carney in attendance.
The president, who has been locked in a trade war with Canada, said his response would depend on the EU's intentions. "If it's a good intention, that's fine," he said. "If it's a bad intention, we'll put very heavy tariffs on Europe."
Carney, who addressed the European Parliament on Thursday, called for "deep cooperation" between Canada and the EU on critical minerals, defense industrial capacity, and artificial intelligence. He framed the partnership as a way to bolster sovereignty and resilience, saying, "We do not seek power to dominate others. On the contrary, we are pursuing resilience so that no one can control our open markets, impair our sovereignty, threaten our territorial integrity, or undermine our freedoms, our democracies, our rule of law."
The trade standoff between the U.S. and Canada has intensified in recent weeks, with Ottawa matching Trump's 50% tariffs on $27.6 billion worth of Canadian goods. The dispute is hitting U.S. industries such as steel and aluminum and has strained relations with America's second-largest trading partner.
Carney did not mention Trump by name in his Thursday address, but he has previously signaled a shift away from reliance on the U.S. "The past 40 years has been a period of deeper economic integration with the United States. Truth is, it was easy business, but it meant we relied too much on one economic partner," he said in a video posted to his office's YouTube channel. "It's clear that time is over."
The development adds another layer to Trump's trade agenda, which has already sparked tensions with allies and rivals alike. As the president continues his reelection campaign, his threats against the EU could further complicate transatlantic relations. For more on the campaign trail, see Trump's uphill Senate fight in North Carolina. The EU's potential embrace of Canada is part of a broader realignment, as Carney embraces EU associate membership bid amid ongoing tariff battles.
