U.S. President Donald Trump has warned the European Union that allowing Canada to become an “associate member” of the bloc could be viewed as a “hostile act,” raising the prospect of further trade tensions between Washington and Brussels.

Trump told reporters on Wednesday that the United States could impose “very serious tariffs” on European goods or restrict trade with the bloc if he concluded that the move was intended to harm U.S. interests. He described the proposal as “laughable” and criticised Canada as a “terrible trade partner.”

EU Proposes Deeper Partnership With Canada

The warning came shortly after European Commission President Ursula von der Leyen proposed that Canada become the EU’s first associate member during her State of the Union address in Strasbourg.

The proposed relationship would seek to deepen cooperation beyond the existing Canada-EU free-trade agreement, including areas such as defence, advanced manufacturing, energy, critical minerals, artificial intelligence, technology, cybersecurity and economic security.

European Commission spokesperson Olof Gill said the initiative was not directed against the United States, describing it as an effort to strengthen cooperation between Canada and Europe.

Carney Welcomes European Proposal

Canadian Prime Minister Mark Carney, who was in Strasbourg for the announcement, welcomed the proposal and later told the European Parliament that Canada was seeking deeper integration with Europe in trade, defence, energy, critical minerals, AI and financial services.

Carney said the objective was to strengthen Canada’s resilience and sovereignty rather than create a new geopolitical bloc directed against major powers.

The proposal remains at an early stage. Its precise terms have yet to be defined, and it would require support from EU member states before moving forward.

France Rejects U.S. Veto Role

France’s Europe Minister Benjamin Haddad said Washington does not have the authority to determine the EU’s geopolitical direction, arguing that European countries are entitled to deepen their relationship with Canada.

The dispute comes amid already strained U.S.-Canada relations and continuing trade tensions between Washington and both Canada and the EU.

The proposed Canadian-EU partnership could therefore become another flashpoint in an increasingly complicated transatlantic trade and geopolitical relationship.

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