President Donald Trump has signaled he may impose new tariffs on European Union goods or even halt trade with Europe on certain items if he decides that the proposal to make Canada an associate member of the EU harms the United States.
“If they do that, if I consider it even slightly a hostile act, I will impose very serious tariffs or I will stop trading with Europe on many things,” Donald Trump told reporters on Wednesday. He added that if Europe acts with “bad intent,” the United States will levy “extremely high duties,” while no problems would arise if they act with “good intent.”
Proposal regarding Canada
European Commission President Ursula von der Leyen proposed making Canada the first associate member of the European Union. She announced the proposal during her address on the state of the Union in Strasbourg on Wednesday. The event was attended by Canada Prime Minister Mark Carney, with whom Ursula von der Leyen said she is ready to work on the idea.
In response to Donald Trump, European Commission spokesperson Olof Gill stated that the proposed partnership between the EU and Canada “is not directed against anyone else.” According to him, it is intended to focus on “our common strength.” Olof Gill referred to Ursula von der Leyen‘s speech at the European Parliament.
US-Canada trade relations
Last weekend, Donald Trump expressed optimism about resolving the trade dispute between the United States and Canada, stating he expects a deal “pretty soon.” However, he provided no details regarding a possible resumption of formal negotiations between the countries.
It remains unclear what specific legal authority Donald Trump would use to impose the new trade restrictions he mentioned.
Commenting on the EU proposal regarding Canada, Donald Trump called it “ridiculous” and declared that Canada is a “terrible trading partner.”
Source: Bloomberg
