Strasbourg, Sept. 17 (SANA)TheEuropean Commissionhas proposed makingCanadatheEuropean Union’s first associate member, prompting U.S. President DonaldTrumpto threaten tariffs or trade restrictions if he considers the move hostile.

AddressingCanadian Prime Minister Mark Carneyduring her annual State of the European Union speech before the European Parliament in Strasbourg, European Commission PresidentUrsula von der Leyensaid the EU urgently needed to rethink its partnerships.

“I would like to work with you on opening the door for Canada to being the first associate member of the European Union,” von der Leyen said.

She said Europe and Canada share common positions on issues ranging from artificial intelligence and climate change to the Arctic and geopolitics, adding that the two sides would seek to deepen cooperation in manufacturing, technology, defense, energy, critical minerals and economic security.

Von der Leyen said Canada and the EU would build on their existingComprehensive Economicand Trade Agreement (CETA) through a broader “Alliance for the Future” aimed at creating what she described as a common prosperity and economic security space.

“We will work on intelligent manufacturing. We will create a tech alliance. We will integrate defense industrial bases. We will make theArctica flagship joint project,” she said.

Von der Leyen said the aim was to bring relations with Canada to “the highest level possible,” describing the initiative as “a partnership not against anyone else, but for our common strength.”

Trump, responding to the proposal, called the idea “laughable” and threatened action against the EU if it moves forward with the plan and he considers it hostile.

“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 while traveling to an event inNorth Carolina.

“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.

The proposal comes amid trade tensions betweenCanada and the United States.Carney said earlier this month that he was seeking a “unique alliance” with the EU as relations between Ottawa and Washington have deteriorated since Trump returned to the White House, with tariffs imposed on tens of billions of dollars in cross-border trade.

Canada and the EU already have extensive economic ties under CETA, but Ottawa has sought closer cooperation with European partners in areas including trade, defense and security.

The 27-member EU has never had an associate membership category, and such a status is not currently provided for under the bloc’s treaties. Details of how the proposed arrangement would work, including its implications forCanada’s relationshipwith the EU single market, have yet to be defined.

The proposal has also raised questions within theEU. Reuters quoted an EU diplomat as expressing surprise at the proposal and saying “nobody really knows what it means,” while voicing concern that the European Commission could be promising more than it could ultimately deliver.

Carney is due to address the European Parliament on Thursday.