Donald Trump warned the EU of massive tariffs if it proceeds with Canada’s bid to become its first associate member, calling the move a hostile act publicly.

According to a recent report, European Commission President Ursula von der Leyen announced that the bloc is preparing to open negotiations for Canada to become its first associate member. The move, aimed at deepening economic ties and aligning standards, has drawn a sharp rebuke from former U.S. President Donald Trump.

Trump’s warning

Speaking at a rally, Trump described the proposal as a “hostile act” and warned that the United States would consider imposing “massive tariffs” on European goods if the EU proceeds. He suggested that the tariff response could target sectors ranging from automobiles to agricultural products, echoing his administration’s earlier use of trade measures as leverage.

EU’s response

The European Commission has stressed that the associate‑membership talks are a sovereign decision aimed at strengthening trade with a long‑standing partner. Von der Leyen said the initiative would facilitate smoother market access for Canadian firms and promote regulatory convergence, without compromising EU standards.

Potential business impact

Maria Alvarez, senior economist at the European Trade Institute, cautioned that any U.S. tariff retaliation could disrupt supply chains that already rely on transatlantic trade. "If the United States were to impose steep duties, European exporters could face cost increases of up to 15 % on key products," she noted. "Companies would likely seek alternative markets, but the short‑term shock could dampen growth in sectors such as automotive, aerospace, and agribusiness."

Industry groups in Europe are urging Brussels to prepare contingency plans, including diversifying export destinations and reinforcing trade defense mechanisms. Meanwhile, Canadian officials have welcomed the associate‑member prospect, highlighting the potential for greater investment flows and joint standards on digital trade and green technologies.

Looking ahead

The next steps involve formal negotiations between EU and Canadian officials, expected to begin later this year. Both sides have signaled a willingness to address lingering issues, such as dairy market access and public procurement rules.

Analysts predict that the outcome will hinge on whether the United States escalates its tariff rhetoric into concrete policy. For now, European businesses are watching closely, balancing optimism about deeper Canada ties with caution over possible U.S. trade retaliation.