‘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
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.
Canada looks to reduce US dependence
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.