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Trump threatens steep tariffs or halt to trade with EU over Canada

U.S. President Donald Trump threatened to impose steep tariffs or halt trade with the European Union if the bloc proceeds with a proposal to make Canada its first “partner member,” while the European Commission said closer ties with Ottawa were “not directed against anyone.”

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Trump threatens steep tariffs or halt to trade with EU over Canada

U.S. President Donald Trump threatened to impose “very steep” tariffs or halt trade with the European Union if the bloc proceeds with a proposal to make Canada its first “partner member,” calling the move hostile, while the European Commission said the proposal was not directed against any party.

Commenting on the proposal put forward by European Commission President Ursula von der Leyen, Trump told reporters: “It’s ridiculous,” adding: “If they go forward, and if I see any hostile action in it, I will impose very steep tariffs or stop trade with Europe.”

Proposal for a Canada-EU partnership

In the presence of Canadian Prime Minister Mark Carney, von der Leyen proposed elevating relations with Ottawa to “partner member” status in the European Union, alongside Canada joining a “European Security Council” that the bloc plans to establish.

“We want to elevate our relationship with Canada to the highest possible level, and so I would like to work with you to explore the possibility of Canada becoming the first partner member of the European Union,” von der Leyen said. She added that there was a “need to reshape our partnerships” after Carney spoke of creating a “unique alliance” on both sides of the Atlantic.

In Brussels, Olof Gill, the European Commission’s trade spokesman, said that “the proposal to strengthen our partnership with Canada is not directed against anyone,” responding to Trump’s characterization of the plan as hostile.

Trade between Canada and the European Union

Canada, which is engaged in a trade war with Washington, is seeking new partners, while the European Union is working to strengthen ties with other partners amid tensions with the United States and competition from China. Carney’s office said: “In an increasingly dangerous and divided world, Canada is working to deepen its relationships with trusted partners.”

Trade between the European Union and Canada has risen 80% since 2016, supported by a free-trade agreement that eliminated most tariffs. Canada also became the first non-EU country this year to join the European SAFE defense procurement program.

Cooperation in energy, defense and minerals

Ottawa and Brussels are discussing expanded cooperation in artificial intelligence, energy, critical raw materials, defense and trade. Canada’s ambassador to the European Union, Jonathan Wilkinson, said the two sides would examine areas “where we have complementary capabilities and needs,” which are of “strategic importance” to “ensure our sovereignty.”

The talks include financing projects linked to strategic minerals, facilitating worker mobility and student exchanges, and Ottawa’s contribution to a European loan to Ukraine worth 90 billion euros, or about 97 billion dollars. Wilkinson said Canada sought “to go beyond merely a free-trade relationship and deepen this relationship across all areas.”

The European Union’s treaties do not provide for “partner member” status, but Germany recently proposed granting it to Ukraine, allowing Kyiv to attend some ministerial meetings or EU summits without voting rights. German Member of the European Parliament Tobias Kremer said: “We do not yet know exactly what that means,” adding that establishing a closer alliance appeared “sensible in principle.”

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