Trump threatens steep tariffs on Europe over Canada partnership

US President Donald Trump has threatened to reduce trade with the European Union and impose heavy tariffs on both Europe and Canada, in response to the EU's partnership plan with Canada.

Trump described the move as hostile, warning that trade with Europe could be halted if actions deemed unfriendly by Washington are taken.

He also called Canada a "bad trading partner," stressing that the imposition of tariffs would depend on the EU's intentions.

The US president said: If Europe acts with bad intentions—if the intentions are good, that's fine—but if they are bad, we will impose very heavy tariffs on Europe.

European response and move to deepen partnership with Canada

For its part, the European Union stated that "the partnership with Canada is not directed against any party." European Commission President Ursula von der Leyen opened the door for Canada to become the EU's first "associate member," in a notable step to deepen economic and security ties between Brussels and Ottawa.

In her annual address to the European Parliament in Strasbourg, von der Leyen invited Canadian Prime Minister Mark Carney to work together to pave the way for Canada to gain associate member status, according to CNBC.

Trade background and cooperation on global issues

The EU's proposal comes as Canada faces a trade war with the United States, after Ottawa pledged to retaliate against tariffs imposed by Trump, prompting it to seek broader strategic partnerships beyond US influence.

Von der Leyen also highlighted the alignment between the EU and Canada on issues such as artificial intelligence, climate change, geopolitics, and Arctic security, with a commitment to enhance cooperation in these areas.