Trump Threatens Tariffs Over EU Plan to Make Canada Associate Member

US President Donald Trump has warned that he will impose steep tariffs or halt trade with Europe on many fronts if the European Union proceeds with a proposal to make Canada its first associate member, calling the idea "laughable".

Speaking to reporters while travelling to an event in North Carolina, Trump said he would act if he judged the move to be hostile. "If they do that, if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things," he said, adding that a good intention would be acceptable but a bad one would invite "very heavy tariffs on Europe".

The proposal was put forward by European Commission President Ursula von der Leyen during her annual State of the Union address, which Canadian Prime Minister Mark Carney attended. Von der Leyen framed the plan as a way to deepen ties among allies in what she described as "an openly hostile world".

The EU faces the risk of war on its borders because of Russia's invasion of Ukraine, while both the bloc and Canada have had to manage trade tensions with the United States and an increasingly assertive China.

Earlier this month, Carney said he was seeking a "unique alliance" with the EU, as relations between Ottawa and Washington have deteriorated since Trump returned to the White House, leading to tariffs on tens of billions of dollars in cross-border trade.

The EU has historically resisted flexible alliances that carry no legal status. One EU diplomat expressed surprise at the proposal, saying "nobody really knows what it means", and voiced concern that the Commission chief "is overpromising and won't be able to deliver".

Carney is scheduled to address the European Parliament on Thursday morning.