President Trump is threatening to impose new tariffs on products from the European Union if he concludes the bloc’s proposal to make Canada its first “associate member” amounts to a hostile act toward the U.S.
Mr. Trump said the proposal did not make sense to him because “Canada’s been a terrible trade partner.”
“If it’s a good intention, that’s fine. If it’s bad intention, we’ll put very heavy tariffs on Europe, which is a possibility,” Mr. Trump told reporters late Wednesday.
Mr. Trump weighed in after Canadian Prime Minister Mark Carney said he was open to European Commission President Ursula von der Leyen’s proposal to make Canada an associate member.
The designation, which would bring closer economic and defense ties between Europe and Canada, does not yet exist, so EU members would have to create and ratify it.
Still, the overture signals that Canada is seeking ways to become less dependent on the U.S.
The North American neighbors are locked in a bitter trade war after Mr. Trump imposed 50% tariffs on a range of Canadian goods, citing unfair treatment of U.S. producers.
Canada retaliated with dollar-for-dollar tariffs and is openly courting other nations as reliable partners.
“We are looking for partnerships that are complementary, that reinforce our sovereignty. And that’s what is on offer here. Nobody is going to tell us what language we speak, no one is going to dictate our culture, or with whom we can strike agreements internationally,” Canadian Prime Minister Mark Carney told the European Parliament.
Mr. Trump argues that Canada treats U.S. producers unfairly even as it relies on the rich American market to bolster its producers. Canada is so dependent on the U.S., he said it should become the “51st state.”
Earlier this week, Mr. Trump issued a memorandum to ban Canada-made products from U.S. government procurement contracts “to the extent appropriate and consistent with law.”
If implemented, Mr. Trump’s threat to impose new tariffs on the EU would complicate an earlier agreement that capped most tariffs on European products at 15%.
SEE ALSO: EU chief proposes Canada join the bloc as 1st ‘associate’ member
Tariffs are duties imposed on foreign goods brought into the U.S.
They are critical to Mr. Trump’s trade agenda. He points to billions of dollars in added revenue for the Treasury from tariffs and his ability to use the levies as leverage in international affairs, while protecting U.S. industries from unfair competition.
Small businesses and other critics say tariffs raise costs across supply chains, resulting in higher prices for consumers, while weakening U.S. relations with other countries.
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