Trump threatens to cut off trade with the EU if it partners with Canada

Canadian Prime Minister Mark Carney will address the European Parliament on Thursday following remarks by U.S. President Donald Trump. Trump suggested that allowing Canada to become an associate EU member could be considered a "hostile act." This development raises the stakes for Carney's speech, which will be closely watched for any further criticism of the U.S. President.

The proposal for Canada to become the EU's first associate member came from European Commission President Ursula von der Leyen, who sees the move as a way to deepen the relationship between the two sides. The idea has been met with a standing ovation from EU lawmakers. Canada, whose economy has long been closely tied to the United States, is seeking a deeper economic, security, and political relationship with Europe in response to Trump's threats of tariffs and trade barriers.

The EU has responded by shelving retaliatory measures and accepting lower tariffs on EU exports to the U.S. A summit between Carney and EU leaders is scheduled for October 29-30 in Montreal, where the details of the proposed new relationship will be discussed.