Charlotte (North Carolina), September 17: US President Donald Trump has warned that the European Union could face higher tariffs if he considers its actions towards Canada to be a “hostile act”, as Ottawa and Brussels move to expand their economic and strategic cooperation.
Speaking to reporters after arriving in Charlotte on Wednesday, Trump said the US could impose “very heavy tariffs” on Europe or restrict trade in certain areas if the bloc acted against US interests.“Canada’s into a terrible trade practice. And now, I will say this: if they do that, if I think it’s a hostile act, I will put very serious tariffs, or stop trading with Europe on many things,” Trump said.
He added that the US would impose tariffs if Europe acted with what he described as “bad intention”, while saying that cooperation would not face such measures if it was undertaken with a “good intention”.
Trump’s remarks came after European Commission President Ursula von der Leyen invited Canada to become the European Union’s first “associate member” during her State of the Union address on Wednesday.“I invite Canada to be the first associate member of the EU,” von der Leyen said.
Canada cannot become a full EU member under the bloc’s treaties, which limit membership to European states. The proposed associate membership could provide a framework for closer cooperation between Canada and the EU.
Von der Leyen also proposed developing the existing Canada-EU trade relationship into an “Alliance for the Future”, with cooperation extending beyond trade.
The proposed partnership could cover technology, defence, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum technologies, cyber security and economic security.
Canada and the EU currently trade under the Comprehensive Economic and Trade Agreement (CETA), which was agreed in 2016 and provisionally implemented in 2017. The agreement reduced tariffs and established rules for trade and investment between the two sides.
The proposed expansion of ties comes amid continuing uncertainty over global trade and Canada’s economic relationship with the United States. Canada has been seeking to diversify its trade partnerships, while the EU has also been working to strengthen supply chains and reduce dependence on external markets.
Trump’s latest comments indicate that further trade measures could be considered if Washington views closer Canada-EU economic cooperation as contrary to US interests.
Related images:- Donald Trump speaking to reporters after arriving in Charlotte, North Carolina- Ursula von der Leyen delivering her State of the Union address- Canadian and European Union flags displayed together- Canada-EU trade or diplomatic meeting- Cargo ships and containers representing Canada-EU trade- Arctic map highlighting Canada and the European Union’s strategic cooperation