President Donald Trump warned Wednesday that he would retaliate against Europe if the European Union carries out a proposal to make Canada its first associate member.
European Commission President Ursula von der Leyen introduced the plan earlier Wednesday, which would strengthen ties between the EU and Canada beyond their existing trade deal.
Trump said he could impose severe tariffs or restrict trade with Europe if he considered the move hostile, expanding his trade dispute with Canada to one of the United States’ largest economic partners.
He told reporters after arriving in North Carolina on Wednesday that he would respond with “serious tariffs” or stop trading with Europe on many products if he viewed the proposal as hostile.
Trump called the prospect “laughable” and labeled Canada a “terrible trade partner.”
Also on Wednesday, Trump signed a presidential memorandum instructing federal agencies to identify Canadian-made goods that could be excluded from the federal procurement system, citing barriers his administration says US companies face when pursuing Canadian government contracts.
Speaking at a rally that day, Trump said the United States was “carrying the European nations with a $200 billion deficit,” referring to the US goods deficit with the EU.
He said the country could simply end trade with Europe because it has its own cars, lumber, food and other products.
Von der Leyen’s proposed arrangement is still unclear: EU treaties do not currently allow for this status, and officials have not explained the rights or responsibilities it would involve.
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Canada and the EU already have a broad trade agreement known as the Canada-European Union Comprehensive Economic and Trade Agreement.
Von der Leyen said she wanted to expand that agreement into a broader partnership covering technology, energy, critical minerals, artificial intelligence, cybersecurity, defense and the Arctic.
After US-Canada trade negotiations failed last month, Prime Minister Mark Carney moved to strengthen Canada’s commercial and security relationships with Europe.
On Wednesday, his office said Ottawa had formally applied to join the British-led Joint Expeditionary Force, a rapid-response military partnership made up of 10 northern European NATO countries.