Key facts
- Donald Trump threatened tariffs or trade stoppage against the EU if Canada becomes an associate member.
- Trump called the EU's proposal for Canada to become an associate member 'laughable' and a 'hostile act.'
- The EU's proposal for Canada to become an associate member is not defined in EU treaties.
- Trump directed federal agencies to identify Canadian goods for removal from the federal procurement system.
- Canada and the EU have a comprehensive economic and trade agreement.
- Canada applied to join the British-led Joint Expeditionary Force.
Donald Trump threatened on Wednesday to retaliate against Europe with significant tariffs or trade curbs if the European Union proceeds with a proposal to make Canada its first associate member. The former president described the plan, floated earlier by European Commission President Ursula von der Leyen, as 'laughable' and a 'hostile act.'
Trump told reporters that if the EU's move was perceived as hostile, he would 'put very serious tariffs or stop trading with Europe on many things.' He also characterized Canada as a 'terrible trade partner' and referred to the US trade deficit with the EU, stating, 'All we have to do is say, you know what? We're not trading with you anymore.'
Separately, Trump issued a presidential memorandum directing federal agencies to identify Canadian-origin goods for removal from the federal procurement system, citing alleged barriers facing US companies seeking Canadian government contracts.
The EU's proposal for Canada to become an associate member is not currently defined in EU treaties, and officials have yet to detail the rights or obligations associated with such a status. Canada and the EU already share a broad trade agreement, the Comprehensive Economic and Trade Agreement. Von der Leyen expressed a desire to expand this relationship to encompass technology, energy, critical minerals, artificial intelligence, cybersecurity, defense, and the Arctic.
Following the breakdown of US-Canada trade talks last month, Prime Minister Mark Carney has sought to strengthen Canada's commercial and security ties with Europe. On Wednesday, his office announced that Ottawa had formally applied to join the British-led Joint Expeditionary Force, a rapid-response military partnership involving 10 northern European NATO countries.