Trump says Canada-EU associate membership could be ‘hostile act’

U.S. President Donald Trump escalated his trade war by stating that if Canada becomes an associate member of the European Union, it could be considered a "hostile act." Speaking to reporters in North Carolina, Trump threatened heavy tariffs on European goods if the move is made with "bad intentions." Canada has been labeled a "terrible trade partner" by Trump, following his signing of a memorandum to remove all Canadian-origin products from U.S. government procurement.

White House officials clarified that this order is unrelated to the European Union's closer ties with Canada. Prime Minister Mark Carney attended the European Union address, discussing the need to "urgently reimagine" the relationship with the EU. The U.S. procurement order targets Ottawa's "Buy Canadian" policy, which prioritizes Canadian companies in large federal purchases and restricts non-defence contracts to Canadian or international firms from countries that offer the same access to Canadian businesses.

The U.S. Trade Representative will monitor for circumstances that may require further action, and inform the president if goods can be returned following a change in policy by the Canadian government.