President Donald Trump has threatened to impose new tariffs or restrict trade with the European Union if he determines that a push to make Canada a potential associate of the bloc is harmful to the U.S. “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,” Trump told reporters Wednesday. He added, “If Europe does that with a bad intention, if it’s a good intention, that’s fine, if it’s a bad intention, we’ll put very heavy tariffs on Europe.”
The president’s remarks came after European Commission President Ursula von der Leyen proposed Canada become the EU’s first associate member. Von der Leyen extended the invitation during her state of the union address in Strasbourg, France, with Canadian Prime Minister Mark Carney in attendance. This proposal aligns with Canada’s multi-year strategic shift to diversify its trade partnerships, particularly toward the east and west, reducing its reliance on the U.S.
Trump’s comments risk further inflaming a simmering trade war between the U.S. and Canada, two nations with deeply intertwined economies. Last month, after trade talks collapsed, Trump imposed 50% tariffs on $20 billion worth of Canadian goods, prompting Carney to retaliate with roughly equal levies on U.S. products. Additionally, Trump restricted Canadian goods from federal government purchases, further straining relations.
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In response to Trump’s threats, European Commission spokesman Olof Gill emphasized that the proposed EU-Canada partnership is “not against anyone else” but aims to strengthen their mutual relationship. Gill referenced von der Leyen’s speech, stating, “As our President made clear yesterday, the proposed strengthening of our partnership with Canada is not against anyone else, but for our common strength.”
Carney, addressing the European Parliament, highlighted the challenges posed by nations weaponizing trade and supply chains. He advocated for closer cooperation among like-minded countries, stating, “A single tree will come down in it. A forest will not.” When questioned about Trump’s remarks, Carney asserted Canada’s autonomy in international agreements, declaring, “No one is going to dictate our culture or with whom we can strike agreements internationally.”
Trump expressed optimism over the weekend about resolving the trade fight with Canada, saying he saw a deal coming “fairly soon.” It’s unclear what legal authority Trump would use to impose his fresh threat of penalties. Trump dismissed the EU’s invitation to Canada as “laughable,” adding, “Canada has been a terrible trade partner.”
