President Donald Trump warned Wednesday that the European Union’s plan to grant Canada its first “associate membership” is a hostile act that could raise costs for American businesses. He told reporters he may impose very serious tariffs or even halt trade with Europe if the proposal moves forward.
Dallas trade expert sounds alarm
Michelle Schulz, founder and managing partner of Schulz Trade Law in Dallas, said the potential deal threatens to increase transportation costs, customs fees, and administrative burdens for U.S. companies that rely on Canadian imports. “U.S. companies that are importing from Canada are saying, ‘We may just have to pass on the cost.’ That’s a little scary for all of us,” Schulz said.
Economic stakes of the Canada‑EU partnership
The EU’s associate‑membership concept would deepen cooperation on trade, defense, minerals, energy, space, and research. While Canadian Prime Minister Mark Carney welcomed the proposal, emphasizing that “Canada and Europe are each strong, and together they are stronger,” trade experts note that the United States already levies a 15% tariff on some European goods and a 50% tariff on certain Canadian products.
Last year the United States imported more than $380 billion worth of goods from Canada, with roughly 70 % of Canadian exports destined for the U.S., according to the Get the Facts Data Team. Any disruption could force American manufacturers to look to alternative sources such as China or Mexico, potentially raising prices for consumers.
National‑security concerns
Beyond economics, experts warned that an escalated trade dispute could jeopardize long‑standing defense contracts with Canada, a trusted partner in U.S. national‑security projects. An expanded trade war might compel contractors to seek new suppliers, complicating defense procurement.
EU proposal still in early stages
The mechanics of an associate membership have yet to be defined, and Canada has clarified it is not seeking full EU membership. EU Commissioner Ursula von der Leyen expressed a desire to elevate the relationship to the “highest level possible,” while the Trump administration remains poised to protect American industry and consumers.
Original reporting: WPBF (Treasure Coast / Hearst) — read the source article.
