US President Donald Trump speaks to the press upon arriving at Charlotte Douglas International Airport in Charlotte, North Carolina, USA on September 16, 2026.
Kevin Lamarque | Reuters
President Donald Trump on Wednesday threatened to impose tariffs on the European Union or cut off trade with the EU entirely if he moves forward with his plan to make Canada its first-ever “associate member state.”
“I think it’s ridiculous…Canada is a terrible trading partner,” Trump told reporters after arriving in North Carolina. He conditioned his threat on the wishes of European leaders, saying: “If we consider this to be a hostile act, we will impose very severe tariffs or suspend trade with Europe on many things.”
Trump’s comments came after European Commission President Ursula von der Leyen said the EU was opening the door for Canada to become the 27-nation bloc’s first associate member.
Currently, associate member states do not exist as a formal category under the EU treaties, and such arrangements must be drawn up and approved by member states.
The proposal, which came as Brussels and Ottawa seek to deepen ties, signaled a major shift in the EU, which had been insensitive to Germany’s proposal in May to grant Ukraine associate membership status.
In the annual State of the Union address in Strasbourg, France, EU member states said they want to take their relations with Canada to the “highest possible level.”
European Commission President Ursula von der Leyen, European Parliament President Roberta Mezzola, and Canadian Prime Minister Mark Carney pose for a group photo at the European Parliament on September 16, 2026 in Strasbourg, France.
Ahmet Ser | Anadolu | Getty Images
Canadian Prime Minister Mark Carney, who attended the speech, has said in the past that Ottawa is keen to pursue a “unique security and economic union” with Europe, but not full membership.
Canada has been seeking to diversify away from the United States after months of escalating trade tensions and the collapse of bilateral trade talks. President Trump has imposed 50% tariffs on Canadian goods and plans to ban imports of the country’s dairy products, alcohol and cars later this month, prompting retaliation from Ottawa.
“While Washington and Ottawa may seek to exit the current trade war, Canada will continue to reduce its vulnerability to U.S. economic pressure,” said James Lindsay, a senior fellow at the Council on Foreign Relations.
Von der Leyen’s pitch to Canada includes collaboration on manufacturing, defense industrial base integration, technology partnerships, energy, artificial intelligence and cooperation in the Arctic.
Canada is already the only non-European country to join the EU’s SAFE Agreement (an initiative that gives Canadian companies preferential access to defense procurement) and has a free trade agreement with the EU that eliminates tariffs on about 99% of goods, although the deal still needs to be ratified by 10 EU countries.
The new U.S. tariffs on the EU would test the trade framework signed last year between Washington and Brussels, which caps most exports from the EU to the U.S. at 15%.
The city of Brussels has not said whether it will proceed with its proposal for associate membership in the face of Trump’s threats. EU member states, some of which were reportedly blindsided by the announcement, have yet to respond to President Trump’s threat.
