Trump threatens Europe with heavy tariffs over Canada-EU ties, calls move a possible ‘hostile act’

US President Donald Trump has warned the European Union (EU) that it could face “very heavy tariffs” if Washington considers the bloc’s growing ties with Canada a hostile move. His remarks came after the European Commission proposed making Canada the EU’s first-ever “associate member”, signalling a potentially significant expansion of economic and strategic cooperation between Ottawa and Brussels.

Speaking to reporters after arriving in North Carolina’s Charlotte, Trump linked his warning directly to the intentions behind the proposed Canada-EU arrangement. He said the United States could impose substantial tariffs on European goods or even halt trade in several areas if he believed the move was being made with “bad intention”.

“Canada’s into a terrible trade practice. And now, I will say this: if they do that, if I think it’s a hostile act, I will put very serious tariffs, or stop trading with Europe on many things,” Trump said. He further warned, “And so, if they do that, if Europe does that with a bad intention–because if it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe.”

EU proposes associate membership for Canada

Trump’s comments followed a major announcement by European Commission President Ursula von der Leyen during her annual State of the European Union address in Strasbourg on Wednesday.

Von der Leyen invited Canada to work towards becoming the European Union’s first “associate member”. Canadian Prime Minister Mark Carney was present during the address as the EU outlined plans for a much broader relationship with Ottawa. ” I invite Canada to be the first associate member of the EU,” von der Leyen said during her speech.

The proposed status would not amount to full EU membership. Under the bloc’s treaties, membership is reserved for European states, meaning Canada cannot join the EU as a conventional member. The proposed associate status would instead create a new framework for deeper cooperation between Canada and the 27-member bloc.

From CETA to an ‘Alliance for the Future’

The proposal would also take the existing Canada-EU relationship beyond its current trade framework. Von der Leyen said Brussels wants to move from the Comprehensive Economic and Trade Agreement, or CETA, towards what she described as an “Alliance for the Future”. “We will move from CETA to an Alliance for the Future. To create a common prosperity and economic security space,” she said.

CETA was agreed between Canada and the EU in 2016 and has been provisionally applied since 2017. The agreement substantially reduced tariffs and created a framework for increased trade and investment between the two sides. Von der Leyen said trade in goods between Canada and the EU has grown by 75 per cent in less than a decade under CETA.

The proposed alliance would extend cooperation well beyond conventional trade. Areas mentioned by von der Leyen include intelligent manufacturing, technology, defence, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum technologies, cybersecurity and economic security.

Why Canada is looking towards Europe

The proposal comes at a time when Canada is seeking to broaden its economic and strategic partnerships amid strained relations with the United States. Canada’s economy has traditionally been deeply connected to the US market, making changes in American trade policy particularly significant for Canadian businesses and exporters. Under Trump’s administration, trade relations between Washington and Ottawa have faced renewed tensions as the US has imposed tariffs and threatened additional measures.

Against this backdrop, Ottawa has been pursuing greater diversification of its international trade and economic relationships. The proposed closer partnership with Europe could provide Canada with another major avenue for cooperation in areas ranging from trade and investment to defence, technology and critical minerals.

What could the proposed EU-Canada partnership cover?

The proposed “Alliance for the Future” is considerably broader than a conventional trade arrangement. According to von der Leyen’s announcement, the two sides could cooperate on:

• Technology and advanced industries
• Defence industrial cooperation
• Arctic projects
• Energy and critical minerals
• Battery supply chains
• Artificial intelligence
• Quantum technologies
• Cybersecurity
• Economic security
• Intelligent manufacturing

Von der Leyen described the initiative as a partnership intended to strengthen Europe and Canada rather than one directed against another country. 

(With inputs from ANI)

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