
WASHINGTON, September 17 (H.S.) - US President Donald Trump has threatened to impose heavy tariffs on the European Union or restrict trade with Europe if Canada becomes an associate member of the bloc.
If they do that, if I think it's an all-out hostile act, I will put very serious tariffs or stop trading with Europe for many things, Trump told reporters.
European Commission President Ursula von der Leyen proposed on Wednesday making Canada the European Union's first associate member, as Brussels seeks to deepen economic and security ties with Ottawa. Axios reported that the proposal comes amid strained US-EU relations and Canada's efforts to diversify its economic ties.
Von der Leyen said the proposed relationship could deepen cooperation in defence, manufacturing, technology, energy and the Arctic. The precise terms of any associate membership, including market access and rights for citizens, have yet to be defined.
Trump reiterated his warning on Thursday, saying the United States could impose very heavy tariffs on Europe if it considered the Canadian move hostile.
The proposal would represent a new form of cooperation between Canada and the EU beyond their existing trade relationship. The EU already has arrangements extending aspects of its single market to Norway, Iceland and Liechtenstein, but Canada's proposed status would be different, according to Axios.
The move comes as Canada seeks to reduce its economic dependence on the United States. Canadian Prime Minister Mark Carney is expected to address the European Parliament, while Canada is scheduled to host the next Canada-EU summit in Montreal on October 29-30.
The White House and the Canadian prime minister's office had not responded to requests for comment, according to Axios.
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Hindusthan Samachar / Indrani Sarkar