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Trump derides EU pitch to Canada as 'laughable', threatens more tariffs - Finance news and analysis from Global Banking & Finance Review
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Trump derides EU pitch to Canada as 'laughable', threatens more tariffs

Published by Global Banking & Finance Review

Posted on September 17, 2026

2 min read

· Last updated: September 17, 2026

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Trump Slams EU Proposal for Canada, Threatens Hefty Tariffs in Response

US-EU-Canada Relations and Trade Tensions

BRUSSELS, Sept 17 (Reuters) - U.S. President Donald Trump has threatened to take action against the EU if it moves forward with European Commission President Ursula von der Leyen's proposal to make Canada the bloc's first associate member.

Trump's Response to EU's Proposal

"If they do that, if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things," Trump told reporters en route to an ​event in North Carolina, calling the proposal "laughable".

Conditions for Tariffs

"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.

Background on the EU Proposal

Von der Leyen made the proposal on Wednesday during her annual State of the Union speech, attended by Canadian Prime Minister Mark Carney, as she sought to deepen ties among allies in what she called "an openly hostile world".

Geopolitical Context

The EU faces the risk of war on its borders due to Russia's invasion of Ukraine, while both the bloc and Canada have grappled with trade tensions with the United States and an increasingly assertive China.

Canada's Position and EU Concerns

Canada's Push for Alliance

Earlier this month, Carney had said he was seeking a "unique alliance" with ​the EU as relations between Ottawa and Washington have deteriorated since Trump's return to the White House, leading to tariffs on tens of billions of dollars in cross-border trade.

EU's Historical Stance

The EU has historically ‌resisted flexible ⁠alliances that have no legal status.

Diplomatic Reactions

One EU diplomat expressed surprise at the proposal saying "nobody really knows what it means," adding there were concerns that the European Commission chief "is overpromising and won't be able to deliver."

Upcoming Developments

Carney is due to address the European Parliament on Thursday morning.

(Reporting by Mariana Hernandez, Writing by Charlotte Van Campenhout; Editing by Clarence Fernandez and Hugh Lawson)

Key Takeaways

  • Trump framed the EU–Canada associate membership proposal as potentially 'hostile,' threatening severe tariffs or trade suspension if intentions are bad. (apnews.com)
  • Ursula von der Leyen proposed Canada become the EU’s first associate member—an unprecedented and legally undefined status—to build an “Alliance for the Future” on trade, security, tech, and Arctic cooperation. (axios.com)
  • The proposal responds to Canada’s efforts to diversify away from U.S. dependence amid escalating tariffs; key details on the scope of associate membership remain unclear pending further negotiations. (lemonde.fr)

References

Frequently Asked Questions

What did President Trump say about the EU's proposal regarding Canada?
President Trump called the EU's proposal to make Canada an associate member 'laughable' and threatened severe tariffs if implemented.
Who made the proposal to make Canada the EU's first associate member?
European Commission President Ursula von der Leyen made the proposal during her annual State of the Union speech.
What reasons did the EU cite for deepening ties with Canada?
The EU cited an 'openly hostile world,' Russia's invasion of Ukraine, and trade tensions with the US and China as reasons.
How did the EU diplomat react to von der Leyen's proposal?
An EU diplomat expressed surprise and concern, stating that 'nobody really knows what it means' and fearing overpromising.
What is the current state of Canada-US and Canada-EU relations?
Ottawa and Washington relations have deteriorated, while Canada seeks a 'unique alliance' with the EU amid mounting trade tensions.

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