Trump Warns EU Over Canada Associate-Member Plan, Threatens New Tariffs

US President Donald Trump said on September 16, 2026 that he would impose new tariffs on the European Union and even cut some trade if the bloc proceeds with a plan to make Canada its first associate member. He said there would be no problem if Europe's intentions were good, but that high tariffs would be added if its intentions were not.

European Commission President Ursula von der Leyen had proposed in her State of the Union address in Strasbourg that Canada become the EU's first associate member. Canadian Prime Minister Mark Carney was present at the time.

In response, Carney said Canada is not seeking to become an EU member state, but is instead working to negotiate a distinct alliance relationship with the EU. Canada and the EU have already signed a free trade agreement that removes tariffs on about 99% of goods, though it still requires ratification by 10 EU countries. Canada is currently the only non-European country in the EU's SAFE instrument, which provides Canadian firms with preferential access to defence procurement. Associate membership is not currently a formal category under EU treaties, and any such arrangement would need to be created and approved by member states. Several EU member states said they were not informed in advance about the announcement of the proposal, and have not yet responded to Trump's threat. Brussels has not indicated whether it will continue to pursue the associate-member proposal under Trump's threat.

US-Canada trade tensions had already been escalating. After trade talks collapsed in August 2026, Trump imposed a 50% tariff on 20 billion US dollars of Canadian imports, and Carney responded with tariffs of roughly the same amount on US-made products. Trump also ordered Canadian goods removed from the federal civilian procurement system and plans to ban Canadian dairy, alcohol and automobile imports later in September 2026. The Canadian government has made clear it wants to strengthen economic ties with the rest of the world, including the EU, as part of a multi-year strategic shift aimed at directing trade flows more toward east and west rather than mainly south to the United States. Trump had previously expressed optimism about resolving the US-Canada trade dispute, saying he believed a deal could be reached soon, but did not provide details on when formal negotiations between the two countries would resume. It remains unclear what legal basis Trump would use to implement the threat of new punitive tariffs.

The US-EU trade framework reached in 2025 sets a 15% tariff ceiling on most EU exports to the United States, and any new US tariffs on Europe would test that framework.