U.S. President Donald Trump warned Wednesday that the European Union granting Canada associate member status could constitute a “hostile act,” threatening to impose heavy tariffs on the bloc in retaliation.
Trump stated he would levy substantial duties on Europe if he deemed the bloc’s intentions unfavorable, while leaving room for cooperation if they were not. “If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe,” he said, adding that Washington could also sever trade ties in certain sectors.
The president dismissed the prospect of Canada joining the EU as “laughable” and characterized America’s northern neighbor as a “terrible trade partner.”
The remarks follow European Commission President Ursula von der Leyen’s announcement that Canada and the EU would expand their existing free trade agreement (CETA) into a broader “Alliance for the Future,” aimed at creating a shared space for prosperity and economic security.
Delivering her annual State of the European Union address in Strasbourg, von der Leyen framed the deepening partnership as rooted in shared democratic values as well as trade. Addressing Canadian Prime Minister Mark Carney, who received a standing ovation, she said, “Above all, dear Mark, Europe and Canada believe in democracy.” Carney is scheduled to address the European Parliament on Thursday.
Trump’s tariff threats and repeated suggestions that Canada become the 51st U.S. state have significantly strained bilateral relations. Seeking to reduce its reliance on the United States — the destination for approximately 70% of Canadian exports — Carney has advocated for a “unique alliance” with the EU.
Trump Rupture Accelerated Canada’s Pivot Toward Europe
The strategic shift toward Europe has been building for some time. In a closely watched speech at the World Economic Forum in Davos last January, Carney urged middle powers to collaborate to increase their leverage amid great-power rivalry.
“When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered,” Carney argued.
Ottawa has since retaliated against U.S. tariffs and rejected trade terms Carney says would undermine Canadian sovereignty.
Escalating pressure, Trump signed a memorandum Wednesday directing the U.S. government to exclude Canadian goods from federal procurement. The White House framed the move as retaliation for Canada’s “Buy Canadian” policy, which it labeled unfair and discriminatory toward American workers and businesses.
By contrast, the EU has pursued a separate track with Washington, securing a trade agreement that caps tariffs on most EU exports at 15% while eliminating European duties on U.S. industrial goods.
Canada Has Already Joined EU’s Defense Procurement Program
Jonathan Wilkinson, Canada’s ambassador-designate to the EU, confirmed Wednesday that Ottawa had discussed associate membership with European officials prior to von der Leyen’s speech and was aware the option was under consideration.
According to Wilkinson, Canada had explored an “Alliance for the Future,” while European counterparts raised the possibility of associate membership.
Wilkinson clarified that Canada is not seeking full EU membership, which would require ceding sovereignty. Instead, Ottawa aims to “get as close as we possibly can” to the bloc in a manner that bolsters rather than diminishes Canadian sovereignty.
Carney’s office welcomed von der Leyen’s proposal, stating Canada was deepening EU ties “to strengthen our sovereignty” and supported moving beyond CETA.
Von der Leyen outlined that the expanded partnership would span 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,” she said. “In short, we want to bring the relationship with Canada to the highest level possible.”
