Trump threatens EU with trade reduction over Canada partnership plan

European Commission President Ursula von der Leyen proposed granting Canada the status of the first "partner member" of the European Union as part of an effort to deepen relations between the two sides, prompting US President Donald Trump to threaten imposing steep customs duties or halting trade with Europe if he deemed the step an "aggressive act".

Trump told reporters, commenting on the plan unveiled by von der Leyen, "It's ridiculous," adding, "If they go ahead, and if I see any hostile behavior, I will impose very severe tariffs or stop trade with Europe."

In a address to Canadian Prime Minister Mark Carney, who was invited to Strasbourg to attend her annual State of the Union speech, she said, "We want to elevate relations with Canada to the highest possible level (...) and therefore I would like to work with you to explore the possibility of Canada becoming the first partner member of the European Union."

Canada, which is engaged in a trade war with the United States under Trump, seeks to diversify its partnerships, while Europe, whose ties with Washington are similarly tense, is rallying support for a strategy aimed at balancing its relations with China and the United States.

Ottawa and Brussels aim to strengthen their partnership in areas including artificial intelligence, energy, and critical raw materials, especially rare‑earth elements. Canada also hopes to conclude an agreement allowing the European Investment Bank to finance Canadian projects linked to strategic minerals, with the goal of reducing dependence on China.

The talks also cover easing rules on labor mobility and increasing student exchange through the EU's Erasmus programme, as well as exploring Canada's contribution to the EU's €90 billion loan to Ukraine by participating in defense projects for Kyiv.