FX.co ★ Trump threatens EU with heavy tariffs over Europe’s rapprochement with Canada

US President Donald Trump has threatened to partially halt trade with the European Union and impose hefty tariffs if EU authorities grant Canada the status of an associate member. Speaking to reporters, the US leader stressed that Washington will assess European intentions. If they are deemed hostile, the United States will respond with tough trade measures. Trump called the idea of Ottawa aligning with Europe absurd and characterized Canada as an extremely difficult trading partner.

The White House’s threats came in response to comments by European Commission President Ursula von der Leyen in the presence of Canadian Prime Minister Mark Carney. She proposed opening the way to grant Canada a special status as the EU’s first associated participant for the sake of shared economic security. Partners plan to expand trade, join forces on defense, energy, commodity development, artificial intelligence advancement, and Arctic exploration. Brussels emphasizes that it seeks to create an unusually deep partnership with a country outside Europe.

Washington’s sharp reaction is driven by the lingering trade war between the US and Canada. After talks on tariffs for metals and auto parts collapsed, the White House imposed 50% duties on $20 billion of Canadian imports and barred Canadians from the US government procurement market. In this situation, Washington views Ottawa’s turn toward the European market as a direct threat to US interests and an attempt to undermine America’s economic influence.