Carney heads to Europe as US tariff fight deepens

Canadian Prime Minister Mark Carney said on Sunday that Canada is seeking a “unique alliance” with the European Union but is not pursuing membership of the bloc, framing the approach as part of his government’s broader effort to deepen ties with European partners amid an escalating trade war with the United States.

Speaking to reporters at the Toronto International Film Festival, Carney said: “What we are looking — and will begin discussions for — [is] a unique alliance with the European Union.” He denied that Canada was seeking formal EU membership.

The prime minister expanded on the rationale, saying Canada and the EU “share the same values,” “have the same priorities” and “have very complementary strengths.” He added: “We’re stronger together. And this is at a time when the world’s more dangerous and divided, and friends need to stick together at these times.”

Carney’s comments came after the Wall Street Journal reported that EU officials were open to a suggestion from Carney that Canada could become an “associate member” of the bloc. According to officials from both sides cited by the paper, Carney had instructed his special envoy to Europe to “scope out the most ambitious possibilities short of full membership.”

The diplomatic push comes against the backdrop of a sharp deterioration in US-Canada trade relations. Negotiations between the two countries broke down in late August, after which Washington imposed tariffs on key Canadian sectors including steel, aluminium and lumber, and introduced an additional 50% levy on about C$28 billion ($20 billion; £15 billion) of Canadian goods. Ottawa responded with levies of up to 50% on C$28 billion ($20 billion; £15 billion) of US products, ranging from steel to furniture to cotton T-shirts.

Carney will travel to Europe this week for a series of engagements. He is due to address the European Parliament in Strasbourg and attend European Commission President Ursula von der Leyen’s State of the European Union address. He will also travel to Liverpool to meet with the UK prime minister.

Since taking office, Carney has promoted a strategy aimed at creating “a more independent, more resilient economy,” in the wake of increasingly hostile policy towards his country from the Trump administration.

Relations between Ottawa and Washington have also been marked by the US president’s repeated public commentary about Canadian sovereignty. Trump has publicly talked about making Canada a “51st state” of the US, and recently ordered the US government to rename Lake Ontario as “Lake America.”

In January, Carney used a speech at the World Economic Forum in Davos to urge middle powers to come together, arguing that “the old order is not coming back.” On Sunday, Carney said he would begin discussions for what he called a unique alliance with the European Union, amid the escalating trade war with the United States.