EU proposes associate membership for Canada; Trump threatens tariffs

European Commission President Ursula von der Leyen proposed making Canada the EU's first associate member during her State of the Union address in Strasbourg on September 16. Canadian Prime Minister Mark Carney attended as the first non-EU head of government at the annual speech.

The proposal aims to deepen cooperation beyond the existing CETA trade agreement into technology, defense, energy, critical minerals, artificial intelligence, cybersecurity, and Arctic projects. Von der Leyen called for an "Alliance for the Future" to bring relations to "the highest level possible."

“If they do that, if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things.”

Associate membership does not exist in EU treaties and would require unanimous approval from all 27 member states. Canada cannot join as a full member under Article 49, which limits membership to European states.

US President Donald Trump responded the same day, calling the idea "laughable" and threatening "very serious tariffs" or halting trade with Europe if he deems it a "hostile act." He said the US response depends on European "intention."

Canada currently sends roughly 70 percent of its exports to the United States. Trade talks collapsed last month, triggering US tariffs of 50 percent on $20 billion of Canadian goods and Canadian retaliatory tariffs on $20 billion of US products.

Carney has sought a "unique alliance" with the EU but has not fully endorsed associate membership. Canada's ambassador-designate to the EU, Jonathan Wilkinson, said Ottawa discussed the concept but remains focused on "driving results."

A Canada-EU summit is scheduled for October in Montreal. Carney is due to address the European Parliament on September 17.