Abstract:
U.S. President Donald Trump said he would impose new tariffs on goods imported from the European Union or even cut off some trade if he believes promoting Canada as a potential partner of the European Union is harmful to the United States. When asked by reporters on Wednesday about the European Union's proposal for Canada to become the EU's first "associate member," Trump said: "If they do that, if I think it's a hostile act, I will impose very severe tariffs or stop trade with many goods from Europe."
“If Europe does this out of bad faith — if it’s done out of good intentions, fine — if it’s done out of bad faith, we’re going to impose very high tariffs on Europe,” he added.
European Commission President Ursula von der Leyen previously proposed that Canada become the first associate member of the EU and expressed her willingness to work with Canadian Prime Minister Mark Carney on this. She made the invitation Wednesday during a State of the Alliance address in Strasbourg, France, where Carney was also present.
Trump’s remarks are likely to further intensify the long-running trade war between the United States and Canada. The United States and Canada are long-term allies with close economic ties. After the collapse of trade talks last month, Trump imposed 50% tariffs on $20 billion worth of Canadian imports, and Carney immediately imposed tariffs of roughly the same amount on U.S.-made products.
Trump again escalated tensions with his northern neighbor on Wednesday, ordering Canadian goods to be removed from the federal civilian procurement system.
The Canadian government has made clear its desire to strengthen economic ties with the rest of the world, including the European Union, as part of a multi-year strategic transformation plan aimed at shifting trade flows more east-west, rather than focusing primarily on southward flows to the United States.
However, there are still many uncertainties about the proposal to grant the country "associate member" status in the EU, including its specific content. Negotiations could also last for years.
As Trump's comments indicate, the move is likely to draw backlash from the United States, which Carney has said wants to influence Ottawa's trade deals with other economies.
Trump expressed optimism over the weekend about resolving the trade dispute between the United States and its northern neighbor, saying he believed a deal could be reached "very soon," but he did not give any details on when the two countries would resume formal talks. It's unclear what legal basis Trump will rely on to carry out his new threat of punishment.
“I think it’s ridiculous,” Trump said Wednesday of the EU’s invitation to Canada. “Canada has been a terrible trading partner.”
Related articles:
The EU proposes that Canada become the first "associate member" of the EU
Comments