US President Donald Trump has threatened the European Union with heavy tariffs over a proposal to make Canada an associate member of the bloc.
Trump called the proposal “laughable” and suggested it could become a hostile act against the United States.
He made the comments while speaking to reporters on Wednesday.
Trump said the US could impose very heavy tariffs on Europe if he considers the move hostile. He also said Washington could stop trading with Europe on many goods.
“If it’s a good intention, that’s fine,” Trump said. He added that Europe could face heavy tariffs if he sees a bad intention.
EU Proposes New Status for Canada
European Commission President Ursula von der Leyen proposed the new relationship with Canada during her annual State of the Union speech.
The proposal would make Canada the EU’s first associate member.
The proposed status does not currently exist under EU treaties. The EU would also need agreement from its member states before creating it.
Von der Leyen has proposed closer cooperation with Canada in areas such as trade, technology, defense, energy and critical minerals.
Canada and the EU already have a major trade agreement known as CETA.
Canada Welcomes Closer EU Ties
Canadian Prime Minister Mark Carney has welcomed closer ties with the European Union.
Carney spoke to EU lawmakers in Strasbourg on Thursday. He said stronger ties with Europe could help Canada protect its markets and sovereignty.
Canada has not sought full EU membership.
Instead, Ottawa has discussed a closer strategic partnership with the bloc.
The proposed arrangement could expand cooperation in trade, defense, artificial intelligence, energy and other sectors.
Trump Links Proposal to US Interests
Trump has repeatedly criticized the EU over trade issues.
His latest comments come amid wider trade tensions between Washington, Brussels and Ottawa.
Trump said the US response would depend on Europe’s intentions.
The European Commission, however, said the proposal aims to strengthen cooperation with Canada. EU officials have also said the plan does not target the United States.
The proposal now faces discussions among EU member states.