Donald Trump has escalated his trade dispute with Europe, saying he could impose heavy tariffs or suspend trade if the European Union moves ahead with plans to deepen its relationship with Canada. Speaking after landing in North Carolina, Trump said the US would view a formal EU-Canada partnership as a hostile move.
His remarks came shortly after Ursula von der Leyen, president of the European Commission, announced her intention to “open the door to Canada” as the EU’s first “associated member.” The proposal remains at an early stage. Canadian Prime Minister Mark Carney has said Canada wants a distinctive alliance with the EU rather than full membership, and that talks are just beginning. Carney has called for a new transatlantic partnership as the US threatens new tariffs and uncertainty grows over North American relations. Reuters reported that Carney said discussions were only starting and nothing had been finalized.
The Canadian government has confirmed that Mark Carney is traveling to Europe to strengthen ties with the EU in trade and investment, while also bolstering security cooperation. He is scheduled to address the European Parliament.
“Canada has been a terrible trading partner,” Trump told reporters at Charlotte airport. He warned that the US would respond quickly and forcefully if it viewed the EU’s project with Canada as unfriendly. Trump raised the possibility of “very high tariffs” or cutting off trade with Europe in several sectors, depending on how EU-Canada talks develop. Major news agencies have reported no official confirmation that Trump directly threatened to halt all trade with Europe solely because of the discussions.
Carney is due to address the European Parliament in a special session, after von der Leyen publicly invited Canada to explore the proposed status. The EU’s outreach comes as global alliances shift and the bloc seeks closer transatlantic ties, even as the US signals it may escalate trade disputes. Reports place the initiative amid rising tensions with the Trump administration. New trade conflicts are also pushing Ottawa to look more toward Europe.
Earlier this year, Carney spoke at Davos about the breakdown of the old world order and a tougher geopolitical climate. He argued that middle powers like Canada can shape a new system grounded in respect for sovereignty, with commitments to human rights and sustainable development. That approach contrasts with Trump’s focus on US interests and use of tariffs as a bargaining tool.
In Strasbourg, Ursula von der Leyen said the EU wants to make Canada its first “associate member,” with expanded cooperation on defense and technology, as well as Arctic affairs and energy. The plan also covers critical minerals and AI, alongside quantum technologies and cybersecurity. The “associate member” status does not currently exist in EU treaties and would require the agreement of all 27 EU countries, several sources have noted.
Trump’s threat to disrupt trade with Europe over the EU’s outreach to Canada adds to already strained transatlantic relations. The EU’s proposal remains under discussion, while Trump’s willingness to use tariffs or trade freezes as use creates uncertainty for international trade. For Spain and other EU countries, new US tariffs or trade barriers could hit exports and jobs, with wider consequences for economic stability. European leaders must weigh the risks of new alliances against possible American retaliation as governments and businesses monitor the EU’s next steps.
