Carney to address EU as Canada seeks closer ties amid Trump tariff threat

Canadian Prime Minister Mark Carney is set to address the European Parliament on Thursday as Canada and the European Union move towards a closer relationship, a step that has drawn a sharp response from US President Donald Trump. The speech comes a day after European Commission President Ursula von der Leyen proposed making Canada the EU's first associate member, and after Trump suggested such a move could be a "hostile act".

Trump has raised the stakes ahead of Carney's address by threatening further tariffs on Europe and dismissing the idea of Canada joining the EU as "laughable". His remarks have put added focus on whether Carney will repeat the warning he gave in Davos in January, when he said large powers can use economic dependence to pressure smaller countries.

Speaking in Charlotte, North Carolina, Trump said he could respond to the EU proposal by imposing more tariffs on the bloc. He said this would depend on the "intention" of European leaders, adding, "If it's a good intention, that's fine. If it's a bad intention, we'll put very heavy tariffs on Europe." He also suggested that the US could cut off trade with Europe in certain areas, and described Canada as a "terrible trade partner".

For decades, Canada built its economy around close integration with the United States. But Trump's tariffs, his demands for economic concessions and his repeated talk of making Canada the 51st state have pushed Ottawa to reduce that dependence and deepen its economic, security and political ties with Europe.

Von der Leyen made the proposal on Wednesday, saying Europe wanted to take its relationship with Canada to "the highest level possible". The status of associate member does not currently exist in EU treaties and would need to be created. Sitting in the front row of the European Parliament chamber, Carney nodded and stood up to embrace von der Leyen as lawmakers gave the proposal a standing ovation.

She said Canada and the EU should go beyond their existing free trade agreement and build an "Alliance for the Future" with a "common prosperity and economic security space". Carney will host EU leaders at a Canada-EU summit in Montreal on October 29 and 30, where both sides are expected to discuss the proposed relationship in greater detail.

Canada sends about 70 per cent of its exports to the United States, leaving it highly exposed to Trump's tariffs. Ottawa has retaliated and rejected demands that Carney says threaten Canadian sovereignty. Europe, by contrast, shelved retaliation and accepted tariffs of up to 15 per cent on most EU exports to the US.

Carney has repeatedly said middle powers should resist economic coercion. At the World Economic Forum in Davos in January, he warned that when countries negotiate alone with a dominant power, "we negotiate from weakness. We accept what is offered." Trump rebuked him the next day, and Thursday's speech could further strain ties between Washington and Ottawa.

Jonathan Wilkinson, Canada's ambassador-designate to the EU, said on Wednesday that Canada is not seeking full EU membership because that would mean giving up some sovereignty. Instead, he said Ottawa wants "to get as close as we possibly can" to Europe while increasing Canada's independence. What associate membership would involve is still to be negotiated.

Canada has already moved closer to Europe this year by becoming the first non-European country to join the EU's 150-billion-euro SAFE defence procurement programme. This gives Canadian companies access to joint procurement as Europe raises defence spending. The two sides have also discussed closer cooperation on energy, critical minerals, artificial intelligence and digital trade.

Daniel Bland, a political science professor at McGill University in Montreal, said, "The policies and rhetoric of the Trump administration are clearly pushing both Canada and the EU to imagine a world without strong U.S. leadership and to act accordingly." Nelson Wiseman, professor emeritus at the University of Toronto, said Carney's handling of Trump has increased European interest in him. "Carney's shrewdness in dealing with Trump has captured Europe's attention," Wiseman said.

Wiseman said Europeans have long seen Canada as a country that understands the United States particularly well because of the close economic and political links between the two neighbours. Bland said Carney may avoid naming Trump directly in his speech while making his target clear. "He knows that, beyond Europe, the world will be watching, including the White House," Bland said. With Canada and the EU discussing a new framework for ties, Carney's speech is likely to be closely watched in both Brussels and Washington.