Trump says Canada-EU associate membership could be ‘hostile act’

After further escalating his trade war Wednesday, U.S. President Donald Trump said if Canada becomes the first associate member of the European Union it could be a “hostile act.”

Speaking to reporters in North Carolina, the president said if it’s done with “bad intentions” he will “put very heavy tariffs on Europe.”

Trump also called Canada a “terrible trade partner” after earlier Wednesday signing a memorandum directing federal agencies overseeing government procurement in the United States to remove all products of Canadian origin.

“President Trump is taking action to hold Canada accountable for its continued unreasonable and discriminatory treatment of U.S. goods, which has burdened and disadvantaged hard-working Americans,” said a fact sheet from the White House.

A White House official, speaking on background, said that order was not related to the European Union forging closer ties with Canada.

Earlier in the day, Prime Minister Mark Carney listened in the front row of the state of the European Union address as European Commission President Ursula von der Leyen laid out the case for the closer relationship.

She said the two sides must “urgently reimagine” their partnership and move beyond a free-trade agreement to bring the relationship to the “highest level possible.”

Carney is set to address the European Parliament on Thursday. Officials have said the two sides are still talking about how to define an enhanced partnership.

Canada-U.S. relations were upended as Trump returned to the White House last year armed with ever-changing tariffs targeting America’s northern neighbour. But Trump’s trade war has ramped up in recent weeks after negotiations between the two countries broke down.

Carney has warned that Canada’s pivot away from the United States will come at a cost, but the alternative would be far worse.

To justify Trump’s latest move, the presidential order points to Ottawa’s “Buy Canadian” policy, which was launched, along with similar actions by some provinces, after the president hit Canada with tariffs and threats of annexation.

The order said Canada has “unreasonably imposed new barriers to United States companies seeking to access the Canadian government procurement market.”

“My administration will always act to combat such unreasonable or discriminatory practices,” the order said.

The order also said the United States Trade Representative will monitor for circumstances that may require the “need for further action.” It said the department will also inform the president if goods can be returned following “a change in policy by the Canadian government that would end the current treatment toward United States origin items.”