Trump Threatens EU With Tariffs Over Canada ‘Associate Member’ Offer

New Delhi ( Vivek Ojha ) : President Donald Trump on Wednesday threatened to impose tariffs on the European Union or stop trading with the bloc if he deemed its decision to offer to make Canada its first associate member a “hostile act,” amid an escalating trade war between the U.S. and Canada.

Speaking to reporters in North Carolina on Wednesday, the president described the EU and Canada’s push for closer integration as “laughable.” Trump described Canada as a “terrible trade partner,” and said he doesn’t see that happening.

The president then warned that if he perceives this move as a hostile act, he will impose “very serious tariffs or stop trading with Europe on many things.”Trump, however, added that if the associate membership push was being done with “good intention,” then he was fine with it, or else “heavy tariffs” would follow.

The president didn’t specify what type of tariffs or trade restrictions he may impose on Europe or explain how he exactly would determine if the EU and Canada’s actions were “hostile.”

What Do We Know About the EU’s Invitation To Canada?

European Commission President Ursula von der Leyen on Wednesday invited Canada to work with her towards becoming the bloc’s first “associate member.”

Von der Leyen made the pitch directly to Canadian Prime Minister Carney, who attended her State of the Union address to the European Parliament.

Laying out what a deeper partnership could look like, the EU president said the two sides would work on manufacturing, create a “tech alliance,” integrate defense industrial bases, advance AI, and make the Arctic a “flagship joint project.”

She said both the EU and Canada share common goals on issues like AI, climate change, defense, the Ukraine war, and “above all...Europe and Canada believe in democracy.”

The push for a deeper alliance between Brussels and Ottawa comes amid an ongoing trade war between the U.S. and Canada, triggered by Trump’s 50% tariffs on several Canadian imports. Canada responded with retaliatory tariffs of between 15% to 50% on around 700 American goods, including steel, dairy, appliances, agricultural equipment, pulp and paper, and certain electronics. In response to the retaliation, the Trump administration imposed a ban on the import of certain Canadian goods including some dairy products, alcohol and motorcycles.