By Benson Daniel
US President Donald Trump has threatened the European Union with severe tariffs and possible restrictions on trade after the bloc proposed closer ties with Canada, including a new form of “associate membership.”
The proposal was announced by European Commission President Ursula von der Leyen during her State of the Union address, as the EU seeks to strengthen cooperation with Canada on trade, technology, defence and energy amid growing geopolitical and economic pressures.
Canadian Prime Minister Mark Carney, who was in Strasbourg for the European Parliament session, welcomed the initiative as part of efforts to deepen relations between Canada and Europe. The proposed arrangement would not amount to full EU membership, and the bloc currently has no formal category known as “associate membership” under its founding treaties.
Trump criticised the proposal and warned that Washington could impose high tariffs on the EU or reduce trade with the bloc if he considers the move hostile to US interests.
The latest dispute adds another layer to already strained transatlantic trade relations. Canada has been seeking to diversify its economic partnerships as trade tensions with the United States continue, while the EU is also pursuing closer economic and security relationships with countries outside the traditional US-European framework.
The proposed EU-Canada partnership could cover areas including artificial intelligence, cybersecurity, defence cooperation, energy and critical raw materials. Canada has already taken steps towards closer European defence cooperation and is seeking to expand economic links with the bloc.
For businesses, any new US-EU tariff measures could have wider consequences for international trade, particularly if they trigger another round of retaliatory measures. European and American companies operating across the Atlantic could face higher costs, while exporters and importers could be forced to reassess supply chains and markets.
The development also comes as Europe seeks greater strategic autonomy in areas such as defence and energy. Von der Leyen has called for deeper cooperation with partners including Canada, while European leaders have stressed the need to strengthen the continent’s capacity to respond to security and economic challenges.
Carney’s visit to the European Parliament is therefore taking place against a broader reshaping of international trade and security relationships, with Canada looking to expand its options beyond its traditional dependence on the US market.
The immediate impact of Trump’s tariff threat will depend on whether Washington proceeds with new measures and how the EU responds. Any escalation could affect businesses and consumers on both sides of the Atlantic and add further uncertainty to the global trading environment.
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