Trump Threatens Tariffs if Canada Joins EU as Associate Member

European Commission President Ursula von der Leyen proposed that Canada become an 'associate member' of the European Union, which could lead to a closer economic relationship between the two entities. However, US President Donald Trump responded by saying that if he considers this move to be a 'hostile act', the US could impose heavy tariffs on Europe.

The proposal for associate membership is aimed at strengthening Canada's economy in the face of trade tensions with the US. The EU wants to bring the relationship with Canada to its highest level possible, according to von der Leyen. She highlighted plans to cooperate on intelligent manufacturing, technology, defense, cyber security, and artificial intelligence.

Canada currently has a substantial trading relationship with the EU, with bilateral trade in goods and services reaching €130.8 billion last year. However, there are concerns that closer ties with the EU could further isolate Canada from its southern neighbor and largest trading partner.