Trump again raises tariff threat against EU, warns Canada partnership could be ‘hostile act’

WASHINGTON, DC: President Donald Trump on Wednesday, September 16, pulled out one of his favourite tactics, as he threatened retaliation if the European Union were to allow Canada to become an associate member.

The threat came after EU chief Ursula von der Leyen proposed making Canada the bloc’s first-ever associate member, expanding cooperation between Ottawa and Brussels.

Trump called the proposal "laughable” and said the EU could face “very heavy tariffs” depending on its intentions.

The warning marks the latest in a series of trade threats and tariff measures Trump has directed at Canada and the EU during his second term.

Trump threatens EU over proposed Canada partnership

Trump was asked about von der Leyen’s proposal as Canada and the European Union pursue closer economic and strategic ties.

The president said he would consider the move differently depending on the EU’s intentions. “I think it's laughable,” Trump told reporters.

“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 added, “If it's a good intention, that's fine. If it's a bad intention, we'll put very heavy tariffs on Europe, which is a possibility.”

Von der Leyen made the proposal during her annual “State of the European Union” speech in Strasbourg, where Canadian Prime Minister Mark Carney was attending as the first non-European head of government to address the event.

She called for closer cooperation between Canada and the EU on technology, defense, energy and economic security.

“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen told Carney, receiving a standing ovation.

Von der Leyen said the relationship should move beyond trade toward what she called a broader “alliance for the future,” with proposed cooperation covering manufacturing, defense industries, the Arctic, critical minerals, batteries, artificial intelligence, cyber issues and economic security.

Carney’s office also said that Canada was pursuing stronger relationships with trusted partners as it faced pressure from both the United States and China.

Canada and EU face escalating trade tensions with US

Trump’s latest threat comes after months of escalating trade tensions involving Canada.

The United States and Canada failed to reach a trade agreement last month, after which Washington followed through on a threat to impose 50% tariffs on a broad range of Canadian goods.

Canada also responded with their own tariffs covering nearly 700 categories of US products.

The latest US tariffs added 50% levies to more than 100 Canadian products, including certain cheeses, motorboats, all-terrain vehicles and furniture.

A week before Trump’s latest memorandum, his administration also banned imports of Canadian alcohol, motorcycles and other products as the trade dispute intensified.

The administration has also repeatedly used tariff threats in its dealings with the EU.

In July, Trump threatened additional “substantial” tariffs after Brussels imposed fines on US technology companies.

The president accused the EU of targeting American businesses and said at the time that the United States “is not a ‘piggybank’ for Europe.”

Earlier this year, Trump also threatened additional tariffs against several European countries, including Germany, France, the United Kingdom, the Netherlands, Finland, Sweden, Norway and Denmark, linking the proposed measures to his demands over taking ownership of Greenland.

The proposed association has created a new layer of tension between the US and its northern neighbour.

As Canada’s close ties with the EU could highly benefit the country by creating additional avenues for trade and investment as its economic relationship with the United States faces new restrictions.

Canada and the EU already have the CETA free-trade agreement, which has been credited with increasing trade in goods and services by more than 80% since 2016.