Market Flux Event

Trump Threatens Tariffs or Trade Cutoff If EU Admits Canada as Associate Member

Read this in the Market Flux app

President Donald Trump warned on Thursday evening that he would impose severe tariffs or halt trade with European nations if the European Union follows through on a proposal to make Canada its first associate member, calling the move a potential hostile act. Speaking to reporters, Trump said: "If they do that, I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things," while leaving open the possibility that the initiative could be benign, adding "If it's a good intention, that's fine."

The EU proposal originated on Wednesday, when European Commission President Ursula von der Leyen invited Canadian Prime Minister Mark Carney to work toward making Canada the bloc's first associate member, a relationship the EU described as unlike any it has built before. The overture came as Canada has been seeking stronger trade ties in Europe and Asia in response to escalating U.S. tariffs, which already include 50% duties on Canadian goods along with impending restrictions on certain dairy, alcohol and auto imports later this month.

Trump's remarks significantly escalate the transatlantic trade standoff, threatening to extend the ongoing trade conflict from North America to Europe if the EU-Canada relationship deepens. The president's warning of either a full trade cutoff or major new tariffs on European goods adds a new dimension to the pressure campaign he has already applied against both Canada and the EU.

© AI-generated summary is provided by Market Flux

Sources

  1. BusinessCongress approved a bill giving Trump new powers to impose tariffs on countries purchasing Russian petroleum products, a setback for lobbyists concerned the bill creates legal underpinning for a new tariff regime against US trading partners
  2. BloombergTrump Floats EU Tariffs If Canada Invite Deemed a ‘Hostile Act’
  3. Unusual_WhalesBREAKING: Trump has said he would cut off trade with Europe if Canada becomes an associate member of the EU.
  4. WsjTrump Says Allowing Canada to Become Associate Member of EU Could Be ‘Hostile Act’
  5. FirstSquawkTrump expected to meet Gulf leaders in New York next week as Washington weighs its next steps on Iran. The talks, expected on the sidelines of the UN General Assembly, are set to focus on US proposals for a postwar strategy and the broader “day-after” plan being developed by Trump and his senior team. A separate meeting with Israeli PM Benjamin Netanyahu is also being sought, although no Trump-Netanyahu meeting has been scheduled yet, according to an Israeli source - Axios
  6. AshCryptoBREAKING: 🇺🇸 President Trump says the Iran war is ending soon and oil prices will fall fast. Bullish for markets 🚀