Trump Threatens EU with Tariffs Over Canada Associate Membership Plan
President Trump warned he will impose heavy tariffs on the European Union or halt trade entirely if the bloc proceeds with making Canada its first-ever associate member, calling the proposal a potential hostile act and criticizing Canada as a terrible trade partner.
Trump's Tariff Warning
President Donald Trump on Wednesday threatened to impose tariffs on the European Union or halt trade with the bloc entirely if it proceeds with its plan to make Canada its first-ever "associate member." Trump told reporters after landing in North Carolina that "Canada has been a terrible trade partner."
The Context
Canadian Prime Minister Mark Carney has said in the past that Ottawa was keen to pursue a "unique security and economic alliance" with Europe, but not a full membership. The designation, which would bring closer economic and defense ties between Europe and Canada, does not yet exist, so EU members would have to create and ratify it. Canada has sought to diversify away from the U.S. following months of escalating trade tensions and as bilateral trade talks have collapsed.
Trump's Conditions
Trump told reporters "If it's a good intention, that's fine. If it's bad intention, we'll put very heavy tariffs on Europe, which is a possibility." This latest threat comes amid an already fraught trade relationship between the United States and Canada.
Escalating Trade Tensions
Trump has slapped a 50% tariff on Canadian goods and plans to ban the country's dairy, alcohol and auto imports later this month, drawing retaliation from Ottawa. The Trump administration has made clear that any moves perceived as Canada circumventing U.S. interests through European partnerships will face economic consequences.