Canadian Prime Minister Mark Carney said Canada is seeking a “unique alliance” with the European Union as he aims to strengthen international ties amid a deepening trade war with the U.S. Canada’s retaliatory tariffs came into effect last week, matching the economic pressure imposed by the U.S. after negotiations collapsed last month. Carney has encouraged Canadians to take back economic power at the kitchen table, and many have embraced a boycott of U.S. products.
Trump has also repeatedly threatened Canada’s sovereignty, speaking openly of his desire to annex the country and make it the “51st state.” The U.S. accounted for 72.5% of Canadian merchandise exports in 2025, according to the country's annual trade report, making it Canada’s largest trading partner. But Carney is keen to build an international support network that isn’t reliant on the U.S. Over the past 18 months since Carney entered office, Canada has signed agreements that cover trade, defense, more with countries such as Indonesia, Japan, and Ecuador.
At the E.U.-Canada summit in June 2025, Canada established a new Security and Defense Partnership with the bloc. In January, Carney notably met with China’s President Xi Jinping to forge what he referred to as a “new strategic partnership” to end Canada's economic reliance on the American market. Carney agreed to cut his country’s 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, including canola seeds, a major Canadian export.
Continuing with these efforts, Carney on Monday brought together executives and senior leaders from global investment firms to encourage them to invest in the country at the Canada Investment Summit in Toronto. He’s heading for a three-day trip to Europe on Tuesday, where he’ll meet with various European leaders including British Prime Minister Andy Burnham. He’s also set to address the European Parliament in Strasbourg, France, on Thursday, in what could symbolize the mark of a new era between Canada and Europe.
Here’s a look at the alliance options on the table between Canada and the bloc, and what that could mean for U.S.-Canada relations. Canada is not looking to join the E.U. as a member, Carney clarified amid questions over what a firmer relationship between his country and the 27-member bloc might look like. However, a report in the Wall Street Journal, quoting officials from both sides, said Carney is keen for Canada to become an “associate member” of the E.U.
When approached for comment, the European Commission directed TIME to remarks made during a Monday press briefing in Brussels. You will recall that at our E.U.-Canada summit last year, we set a very high level of ambition for cooperation across the board, this year our ambition is even higher.” When asked directly what discussions had taken place between Canadian and European officials, or what this “unique alliance” could look like, Gill declined to answer. TIME has reached out to the Canadian Prime Minister’s office for comment.
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