‘Hostile act’: Trump warns EU with tariffs over Canada’s associate status


US President Donald Trump on Wednesday warned the European Union that it could face “very heavy tariffs” if he views its support for closer ties with Canada as a “hostile act”.

 

The warning came after European Commission President Ursula von der Leyen proposed making Canada the EU’s first “associate member”, as Ottawa seeks to reduce its economic dependence on the US and build stronger ties with Europe amid rising trade tensions.

 

Speaking to reporters after arriving in Charlotte, North Carolina, Trump said, “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.”

  

“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,” he added.

 

EU proposes associate membership for Canada

 

Von der Leyen made the proposal on Wednesday during her State of the Union speech, saying, “I invite Canada to be the first associate member of the EU.”

 

Canada cannot become a full EU member under the bloc’s treaties, which limit membership to European states. Associate membership could, therefore, offer a new framework for closer cooperation without full membership.

 

Von der Leyen also proposed expanding the existing Canada-EU trade relationship into a broader strategic partnership. “We will move from CETA to an Alliance for the Future. To create a common prosperity and economic security space,” she said.

 

The Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU was agreed in 2016 and has been provisionally applied since 2017.

 

The proposed “Alliance for the Future” would cover areas including technology, defence industries, intelligent manufacturing, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security. 

 

Canada looks to reduce US dependence

 

The proposal comes as Canada seeks to diversify its trade and economic partnerships after renewed tensions with Washington under Trump’s trade policies.

 

Canada’s economy has long been closely tied to the US, making it particularly exposed to changes in American trade policy. Trump’s tariffs, demands for economic concessions and repeated references to Canada becoming the 51st US state have increased pressure on Ottawa to strengthen ties with other partners, the Associated Press reported.

  

Carney has previously argued that countries need to reduce their dependence on dominant economic powers. At the World Economic Forum in Davos in January, he said, “we negotiate from weakness. We accept what is offered.”

 

Canada seeks closer strategic ties with Europe

 

Canada is not seeking full EU membership, Canada’s ambassador-designate to the EU Jonathan Wilkinson said on Wednesday, as quoted by the Associated Press.

 

He said Ottawa wants “to get as close as we possibly can” to Europe while maintaining its independence. The details of associate membership have yet to be negotiated.

 

Canada has already moved closer to European defence cooperation. Earlier this year, it became the first non-European country to join the EU’s €150 billion SAFE defence procurement programme. The arrangement gives Canadian companies access to joint procurement as European countries increase defence spending.



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Kevin Harson

I am an editor for Entrepreneur South Africa, focusing on business and entrepreneurship. I love uncovering emerging trends and crafting stories that inspire and inform readers about innovative ventures and industry insights.

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