Trump threatens EU over ‘hostile’ Canada association plan

US President Donald Trump warned on Wednesday that the European Union (EU) could face significant tariffs or a reduction in trade if the bloc proposes to make Canada its first-ever associate member. EU chief Ursula von der Leyen suggested the idea on the day before Canadian Prime Minister Mark Carney was scheduled to address the European Parliament.

The proposal comes as both Canada and the EU shift focus away from a hostile United States under Trump's leadership. Trump commented that he would consider it "laughable" and would impose heavy tariffs if he perceived the plan as hostile. Von der Leyen presented the idea during a speech in Strasbourg, calling for cooperation on technology, defense, and energy.

She proposed creating a tech alliance, integrating defense industrial bases, and making the Arctic a joint project. Canada and the EU have already enjoyed substantial cooperation through the CETA free-trade agreement, which increased trade by over 80% since 2016. Canada is also a participant in a flagship defense loan program. However, the proposal's success depends on EU member state approval.