Trump warns of heavy tariffs if EU grants Canada associate membership

President Donald Trump told reporters in North Carolina that the United States might levy "very heavy tariffs" on Europe if the bloc pursued an associate-membership deal with Canada, which he said would be a "hostile act" depending on European leaders' intentions.

Trump added that the United States could curtail trade with Europe in certain sectors and dismissed the prospect of Canada joining the EU as "laughable," calling Canada a "terrible trade partner."

European Commission President Ursula von der Leyen, in her annual State of the European Union address, said the EU and Canada would expand their existing free-trade agreement, CETA, into a broader "Alliance for the Future" focused on shared democratic values and economic security.

Canadian officials confirmed that Ottawa has been discussing an associate-membership arrangement that would allow Canadians to live and work in Europe without visas, while stopping short of full EU membership to preserve sovereignty. Ambassador-designate Jonathan Wilkinson said the talks had been ongoing before von der Leyen’s speech and that Canada seeks the closest possible ties to the bloc without surrendering sovereignty.

Prime Minister Mark Carney welcomed the EU proposal, stating that deepening ties would strengthen Canada’s sovereignty and move beyond the current CETA framework.