U.S. President Donald Trump has threatened new tariffs against the European Union if it presses ahead with a plan to make Canada the bloc's first "associate member." He called the proposal, unveiled by European Commission President Ursula von der Leyen, "laughable," and warned of retaliation if he judges the move a hostile act.
Trump calls the EU plan "laughable"
Von der Leyen announced the proposal during her annual State of the Union speech, with Canadian Prime Minister Mark Carney in attendance, framing the push to deepen ties with Canada as a response to a hostile world.
Trump dismissed the idea as laughable and said he would judge any move to formalize it by its intent. According to Reuters, if he views it as a hostile act, he will put "very serious tariffs or stop trading with Europe on many things".
A familiar reflex on trade
The EU's proposal is still loosely defined — Canada would become the bloc's first-ever associate member, a status with no fixed institutional shape yet. But the political signal is clear: Europe and Canada, both of which have had difficult trade relations with Washington, want closer cooperation.
Trump's reaction followed a familiar pattern. He reached for tariffs as his default response, even though the associate-membership plan remains a proposal rather than a finished arrangement. He added that a good-faith move would be fine, but a bad-intention one would draw heavy tariffs on Europe.
Markets have not seen a formal tariff announcement over the episode. Still, the exchange reopens a trade-policy fault line between Washington and Brussels, one that could widen further if the rhetoric extends to autos or other politically sensitive sectors.
Sources: Investing.com (Reuters), InvestingLive
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