| President Donald Trump floated hitting goods imported from the European Union with fresh tariffs or even cutting off some trade if he determined that a push to make Canada a potential associate of the bloc was harmful to the US. "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," Trump told reporters Wednesday when asked about the proposal. "If Europe does that with a bad intention - if it's a good intention, that's fine - if it's a bad intention, we'll put very heavy tariffs on Europe," he added. European Commission President Ursula von der Leyen has proposed Canada becoming the first associate member of the European Union, saying she would like to work with Canadian Prime Minister Mark Carney on the idea. She offered the invitation during her state of the union address in Strasbourg, France, Wednesday, with Carney in attendance. Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay ALSO READ: Canada To Join EU? Carney Gives A Surprisingly Open Answer Trump's comments risk further inflaming a simmering trade war between the US and Canada, two longtime allies whose economies are closely linked. After trade talks collapsed last month, Trump imposed 50% tariffs on $20 billion of goods imported from Canada, and Carney retaliated with roughly equal levies on US-made products. The president on Wednesday slapped yet another escalation on the US's northern neighbor by making good on a threat to restrict Canadian goods from federal government purchases. Canada's government has made clear it is eager to boost economic ties with the rest of the world, including the EU, in a multi-year strategic shift to reorient trade flows more to the east and west, rather than being primarily focused southbound toward the US. Yet there is much uncertainty over the offer to make the country an "associate member" of the EU, including what that would entail. Negotiations could also take years. And the move, as Trump's comments indicate, could draw blowback from the US, which Carney has said sought greater input over Ottawa's trade deals with other economies. Trump over the weekend had expressed optimism about resolving the trade fight between the US and its northern neighbor, saying he saw a deal coming "fairly soon," even as he offered no details on any resumption of formal talks between the two countries. It's unclear what legal authority Trump would use to impose his fresh threat of penalties. ALSO READ: Canada Could Become EU's First 'Associate Member': Ursula Von Der Leyen "I think it's laughable," Trump said Wednesday of the EU's invite to Canada. "Canada has been a terrible trade partner," he added. |
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