Trump Threatens EU with Tariffs Over Canada Associate Membership Plan

US President Donald Trump has threatened the European Union with “very serious tariffs” or restrictions on trade if the bloc moves to make Canada an associate member, calling the proposal “laughable” and suggesting it could be viewed as a hostile act.

Trump made the comments on Wednesday after European Commission President Ursula von der Leyen proposed during her annual State of the Union address that Canada become the EU's first associate member. Such a status does not currently exist under EU law and would have to be created.

"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 told reporters while traveling to an event in North Carolina.

He later said the arrangement could be acceptable if it was made with “a good intention,” but warned that otherwise the United States could impose “very heavy tariffs on Europe.” Trump also called Canada a “terrible trade partner” and described the prospect of Canadian associate membership in the EU as “laughable.”

Von der Leyen raised the idea with Canadian Prime Minister Mark Carney in attendance at the European Parliament in Strasbourg. She said the EU wanted to build on its existing trade relationship with Canada, known as CETA, through a broader “Alliance for the Future” designed to create what she called a common prosperity and economic security space.

"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.

She presented the proposed closer relationship as extending beyond trade and said it would be based on shared democratic values.

"Above all, dear Mark, Europe and Canada believe in democracy," von der Leyen said. Carney received a standing ovation from the European Parliament and is due to address the chamber on Thursday.

The proposal comes as Canada and the EU seek to deepen their relationship while both face tensions with Washington under Trump's second presidency. Trump's tariffs and his repeated suggestion that Canada could become the 51st US state have strained relations between Ottawa and Washington.

Canada is particularly dependent on the United States economically, with roughly 70% of its exports going to its southern neighbor. Carney has called for a “unique alliance” with the EU and has argued that Canada needs to reduce its dependence on the United States.

The shift toward Europe had already been developing before the latest proposal. In a speech at the World Economic Forum in Davos in January, Carney called on middle powers to cooperate more closely in an era of great-power rivalry.

"When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered," Carney said at the time.

Canada has responded to US tariffs with retaliatory measures and rejected trade terms that Carney said would weaken Canadian sovereignty.

On Wednesday, Trump also signed a memorandum directing the US government to remove Canadian goods from the federal procurement system. The White House said the measure was retaliation for Canada's “Buy Canadian” policy, which gives preference to domestic products.

The White House described the Canadian policy as unfair and said Trump was acting in response to what it called discriminatory treatment of US goods.

The EU, meanwhile, has taken a different approach in its trade relationship with Washington. The two sides reached a trade agreement setting a 15% tariff ceiling on the vast majority of EU exports, while the EU agreed to eliminate tariffs on US industrial goods.

Canada has already been moving closer to the EU in the area of defense procurement. Jonathan Wilkinson, Canada's ambassador-designate to the EU, said Ottawa had discussed the possibility of associate membership with European officials before von der Leyen's speech and knew the idea was being considered.

Wilkinson said Canada had discussed an “Alliance for the Future” with the EU, while European officials had raised the possibility of associate membership. He stressed, however, that Canada is not seeking full EU membership because that would require surrendering some sovereignty.

Instead, Wilkinson said Ottawa wants “to get as close as we possibly can” to the EU in a way that strengthens rather than diminishes Canadian sovereignty.

Carney's office welcomed von der Leyen's proposal, saying Canada was deepening ties with the EU “to strengthen our sovereignty” and supporting efforts to move the relationship beyond CETA.

The proposed expanded partnership would cover advanced manufacturing, technology, defense production, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security.

"This is a partnership not against anyone else, but for our common strength," von der Leyen said. "In short, we want to bring the relationship with Canada to the highest level possible."

At the same time, the proposal has raised questions about what associate membership would actually mean, since no such status currently exists within the EU's legal framework. European capitals were also reportedly caught off guard by the announcement.

Wilkinson sought to play down expectations, telling reporters in Strasbourg, “We're not there.” He added that Canada's immediate focus was on “driving results.”

Trump's latest warning comes as the trade conflict between Washington and Ottawa continues to escalate. Carney has pushed for closer ties with Europe but has stopped short of fully endorsing Canadian associate membership in the EU.

Carney is scheduled to address the European Parliament on Thursday.