(ASIa Pacific News) US President Donald Trump warned on Wednesday (September 16) that if the EU proceeds with its plan to make Canada its first "associate member", the United States may impose tariffs on the EU and even fully suspend trade with the bloc.

(Screenshot Source: CNBC)

Upon arriving in North Carolina, Trump told reporters: "I think it’s ridiculous… Canada has always been a bad trading partner."

He stated that whether action is taken will depend on the intentions of European leaders, saying: "If I consider this to be a hostile act in any way, I will impose very heavy tariffs on Europe, or stop trade with Europe in many areas."

Trump made these remarks after European Commission President Ursula von der Leyen previously announced that the EU was opening the door for Canada to become the first "associate member" of the 27-nation bloc.

Currently, there is no official "associate member" category under the EU treaties, so any such arrangement must be established jointly by member states and go through approval procedures.

The proposal was put forward as Brussels and Ottawa seek to deepen their relations further, signaling a shift in the EU’s strategic direction. Previously, the EU had remained relatively cautious about the suggestion raised by Germany in May this year to grant Ukraine "associate member" status.

In her annual State of the Union address for the EU delivered in Strasbourg, France, von der Leyen said the EU wanted to take its relationship with Canada "to the highest possible level".

Canadian Prime Minister Mark Carney, who attended the speech, previously stated that Canada wants to build a "unique security and economic alliance" with Europe but does not seek full EU membership.

Over the past several months, as trade tensions between Canada and the United States have continued to escalate and bilateral trade negotiations have stalled, Canada has been seeking to reduce its reliance on the US market.

Trump has previously imposed 50% tariffs on Canadian goods and plans to ban imports of some Canadian dairy products, alcoholic beverages and automobiles later this month. The Canadian government then took countermeasures.

James Lindsay, senior fellow at the Council on Foreign Relations, said: "Washington and Ottawa may eventually find a way to resolve the current trade conflict, but Canada will continue to reduce its exposure to US economic pressure."

The areas of cooperation proposed by von der Leyen for Canada include manufacturing cooperation, integration of defense industrial systems, technology alliances, energy cooperation, collaboration in artificial intelligence and coordination on Arctic affairs.

At present, Canada is already the only non-European country in the EU’s SAFE defense mechanism. This mechanism allows Canadian enterprises to obtain preferential access to European defense procurement.

Canada and the EU already have a free trade agreement, under which tariffs on about 99% of goods are eliminated. Nevertheless, the agreement still needs to be ratified by 10 EU member states.

If the United States imposes tariffs on EU goods again, it will test the trade framework reached between Washington and Brussels last year. The framework caps US tariffs on most EU exports at 15%.

Faced with Trump’s threats, Brussels has not yet stated whether it will continue to advance the Canada associate member plan.

Reports indicate that some EU member states were not even informed of the announcement in advance, and governments of various countries have not yet formally responded to Trump’s warning.