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ctvnews+1cnbccbcU.S. President Donald Trump on Wednesday called the European Union's proposal to make Canada its first "associate member" a potential "hostile act," threatening to impose tariffs on Europe or cut trade ties if the plan moves forward.
"I think it's laughable," Trump told reporters after landing in North Carolina, responding to the proposal unveiled hours earlier by European Commission President Ursula von der Leyen during her State of the European Union address in Strasbourg, France. "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," he said. Trump also called Canada a "terrible trade partner".ctvnews+1
The threat opened a potential new front in the trade conflict just as Trump separately escalated tensions with Canada. On Wednesday, Trump signed a presidential memorandum directing federal agencies to identify and remove all Canadian-origin goods from U.S. government procurement. A White House official said the procurement order was not related to the EU-Canada proposal.whitehouse+2
Von der Leyen had extended the invitation with Canadian Prime Minister Mark Carney sitting in the front row of her annual address. "I would like to work with you on opening the door for Canada being the first associate member of the EU," she said. The two leaders embraced after the remarks. The proposal would build on the existing Comprehensive Economic and Trade Agreement, known as CETA, with a broader "Alliance for the Future" covering manufacturing and energy.news.sky+1
The concept of "associate member" does not currently exist as a legal designation in the EU, and Canada's ambassador to the EU has said the two sides are "a ways away" from formalizing any arrangement.cbc
Trump's combative posture drew criticism from members of his own party. Republican Sen. Susan Collins of Maine warned Carney against tightening Canada's links to the EU, saying it could make reaching a deal with the Trump administration harder. "I do not support this tariff war," Collins told CBC News. Republican Sen. Bill Cassidy of Louisiana went further: "I think it is wrong to have a trade war with Canada. It is not in the interest of our country".cbc
Democratic Sen. Chris Coons of Delaware said he is organizing "a bipartisan trip to Canada by American lawmakers to say, we hear you, we get it, we're acting," though he acknowledged that reversing Trump's trade policies would be "a tall order" even if Democrats win control of Congress in the Nov. 3 midterms.cbc