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‘Laughable’: Trump threatens to cut EU trade over Canada ties

Donald Trump reacted angrily Wednesday to an EU proposal to make Canada its first “associate member”, a move that could foster closer ties on tech, defence and energy. Trump derided the proposal as “laughable” and threatened to impose tariffs or even cut trade entirely with the EU if it goes ahead.

‘Laughable’: Trump threatens to cut EU trade over Canada ties

High gas prices and the increasing cost of living have become defining issues in this year's midterm elections. U.S. President Donald Trump has escalated his trade war with Canada, causing Republican candidates in northern border states, particularly affected by the tariffs, to balance their appeal to Trump's loyal base and reach out to independent voters, many of whom have become disillusioned with his economic policies and his ongoing dispute with Canada.

Michigan and Maine's economies have been closely linked with Canada's, involving industries such as auto parts, lumber, and fruit-picking equipment. These two states, which Republicans must likely win in the November 3 elections to retain control of the US Senate and their respective Senate candidates have taken contrasting approaches to address voter concerns, each with its own political risks.

In Maine, U.S. Senator Susan Collins is distancing herself from President Trump by criticizing the trade war and advocating for exemptions for affected industries. In contrast, Michigan Senate candidate Mike Rogers has criticized Canada while emphasizing his close relationship with the president, arguing that it will help minimize the impact of the trade war.

As the Canadian tariffs are relatively new, candidates have had to devise their responses amidst their campaigns, according to David Hopkins, a political scientist at Boston College. Both candidates will need to transcend the Republican coalition to win their races, he added.

The US imposed 50% tariffs on approximately $20 billion worth of Canadian goods last month, accusing its neighbor of unfair trade practices. In retaliation, Canada imposed tariffs ranging from 15% to 50% on $20 billion worth of US goods, starting on September 8.

Canadian officials have admitted that their levies were intended to apply political pressure. The tariffs were designed to put pressure on the US government, said Canada's Minister of Industry, Melanie Joly.

Public opinion polls show that Americans are more likely to blame Washington for the trade dispute than Ottawa. A Reuters/Ipsos opinion poll found that only 20% of respondents supported higher tariffs on Canadian goods.

U.S. Senator Collins, a moderate Republican representing an independent-leaning state, has been vocal in challenging the president's trade war. She has opposed the tariffs four times and has written to Commerce Secretary Howard Lutnick and Trade Representative Jamie Greer about the economic impact on her state, focusing on products such as road salt, cement, and other items affected by the tariffs.

In Michigan, the tariffs could be particularly damaging to the struggling wood products sector, especially cabinet makers. Rep. Mike Rogers has acknowledged the tariffs' necessity but maintains that they are not a one-size-fits-all solution. On the other hand, Democratic candidate Abdul El-Sayed has taken a lighter approach, acknowledging the negative impact of the tariffs on Michiganders while criticizing the president's actions.

In a statement, White House spokesperson Kush Desai affirmed President Trump's commitment to putting Americans first in all economic negotiations, but emphasized that tariffs are only one tool in an overall economic agenda of tax cuts and deregulation. Political scientists argue that tariffs provide an additional reason for voters dissatisfied with their financial situation to blame Trump and his fellow Republicans.

Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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