Canada Schemes Up Plot To Get Around Trump’s Tariffs

Engaged in a tit-for-tat trade war with the United States, Canada is pursuing stronger ties with Europe and Asia in an effort to ease its trade woes.

Canada and the United States have each imposed 50% tariffs on certain imports from the other country, and Canadian Prime Minister Mark Carney is looking for avenues to get relief from the tariffs. Committed to rallying the world’s “middle powers,” Carney has said that he is “not looking to become a member” of the European Union but is seeking a “unique alliance.”

On Wednesday, European Commission President Ursula von der Leyen offered Carney a solution. 

Von der Leyen offered to make Canada the first “associate member” of the European Union. Von der Leyen framed the proposal as an effort to build “common strength” rather than a move “against anyone else.” Becoming a full E.U. member typically takes years and requires extensive negotiations and legal changes, but it remains unclear what Canada would have to do, or how long it would take, to become an “associate member.” If confirmed, the status would be the first of its kind. 

President Donald Trump responded to the proposal Wednesday night after disembarking from Air Force One for a campaign event in North Carolina.

“I think it’s laughable,” Trump said. “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.” The president added that his next move would depend on what he believes Europe and Canada intend to accomplish.

“If it’s a good intention, that’s fine,” he continued. “If it’s a bad intention, we’ll put very heavy tariffs on Europe.”

One E.U. diplomat was reportedly caught off guard by the proposal, saying that “nobody really knows what it means.” Another diplomat added that some E.U. members were concerned von der Leyen “is overpromising and won’t be able to deliver.” Yet another diplomat called the invitation an “unfortunate proposal, which has never been discussed with Member States.”

At the same time, Canada is also pursuing new trade negotiations with China, a country that praised Canada for walking away from negotiations with the United States. Chinese state media even praised Canada’s efforts as “Chinese-style” tariff retaliation. In September, the countries re-engaged in military talks for the first time in eight years. The conversations had been put on pause after Beijing kept two Canadians in detention in 2018. Officials met in early September in Canada “in support of ongoing military-to-military communications at the functional level.” 

Shortly after the talks between China and Canada, the Canadian government added new tariffs on steel, dairy, and agricultural equipment. The Trump administration also imposed bans on certain Canadian alcohol and “other products that were subject to the 50% tariffs imposed.” The new import bans are set to take effect at the end of this month. 

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