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President Donald Trump on Wednesday dismissed the prospect of Canada becoming an associate member of the European Union as “laughable,” warning that the U.S. could impose heavy tariffs on Europe if he believed such a move was made with “bad intention.”
Trump was asked by reporters about the prospect of Canada becoming the EU’s first “associate member.”
“I think it’s laughable,” Trump responded. “If they do that, if I think it’s at all hostile act, I will put very serious tariffs or stop trading with Europe on many things.”
“If Europe does that with a bad intention – if it’s a good intention that’s fine – if it’s a bad intention, we’ll put very heavy tariffs on Europe,” he added.
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Trump’s comments come amid a trade conflict between two of North America’s largest trading partners after U.S.-Canada trade talks collapsed last month, triggering a series of tit-for-tat tariff measures.
While speaking to reporters Wednesday, Trump also described Canada as a “terrible trade partner.”
His comments came after European Commission President Ursula von der Leyen proposed Wednesday that Canada become the first associate member of the European Union as the two sides pursue a deeper economic and security partnership.
Speaking with Canadian Prime Minister Mark Carney in attendance, von der Leyen said, “I would like to work with you on opening the door for Canada to be the first associate member of the EU.”
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Von der Leyen said the two sides would move beyond their existing CETA trade agreement toward what she called an “Alliance for the Future,” aimed at creating a common prosperity and economic security space. The proposed partnership would include cooperation on manufacturing, technology, defense, energy, critical minerals, artificial intelligence, cybersecurity and the Arctic.
The EU overture comes as Canada looks for new trading opportunities beyond its longtime economic relationship with the U.S.
Carney, who is scheduled to address the European Parliament on Thursday, has pledged to double Canada’s non-U.S. trade over the next decade while pursuing what he has called a “unique alliance” with the EU, rather than full membership.
Historically, the EU has balked at flexible alliances without a defined legal status, and any potential associate membership for Canada would ultimately be up to EU member states to decide.
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Trump’s remarks came the same day his administration escalated a separate trade dispute with Canada.
Trump signed a presidential memorandum directing federal officials to identify Canadian-origin products that could be removed or made unavailable for purchase through the federal civilian procurement system.
The White House accused Canada of imposing barriers that disadvantage American companies seeking Canadian government contracts while Canadian businesses retain access to portions of the U.S. federal procurement market. The memorandum specifically cited Canada’s “Buy Canadian” policy and restrictions imposed by Canadian provinces.
According to the White House, Canadian companies have access to more than $280 billion annually in U.S. federal procurement covered under the World Trade Organization’s Agreement on Government Procurement.
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The Trump administration added that it would take action against what it described as “unreasonable,” “discriminatory” and “unfair” trade practices.
Fox Business’ Bradford Betz contributed to this report.
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