The European Union invited Canada to become its first-ever “associate member” on Wednesday, prompting a new threat from President Donald Trump.
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Trump issues tariff threat
Trump said allowing Canada to become an EU associate member could be a “hostile act.” He threatened Europe with more tariffs if he believes the move is aimed at the U.S.
Trump called the idea “laughable” and said his response would depend on Europe’s intentions.
“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 said. “So if they do that, if Europe does that, with a bad intention, if it’s a good intention, that’s fine. If it’s bad intention, we’ll put very heavy tariffs on them.”
Canada is already in a trade war with the U.S., which still receives roughly 70% of Canadian exports.
Why move closer to the EU?
Canada is looking to reduce its economic dependence on the U.S. If the two sides agree on an associate membership, Canada would be the first country to hold that status.
“Associate membership” doesn’t currently exist in the EU’s treaties, so the two sides would have to negotiate what the new status actually means.
EU Commission President Ursula von der Leyen said she wants to take the relationship with Canada to “the highest level possible,” with closer ties on trade, technology, energy, critical minerals, and defense.
Canadian Prime Minister Mark Carney welcomed the proposal in an address to the European Parliament Thursday, but said a closer alliance is not intended to create a new bloc to rival the world’s great powers.
The next big step comes Oct. 29-30, when Canada hosts EU leaders for a summit in Montreal and the two sides are expected to discuss the proposed relationship in more detail.