Canadian Prime Minister Mark Carney is exploring an unprecedented partnership with the European Union (EU), looking to reduce his country's heavy economic reliance on the United States amid an escalating trade war and political friction with President Donald Trump. Carney has discussed the possibility of Canada becoming an "associate member" of the EU, a status that does not currently exist but one that European officials are reportedly weighing, according to a Wall Street Journal report cited by . Newsweek reached out to Carney's office and the EU for comment on Sunday.
The diplomatic pivot comes as relations between Washington and Ottawa plummet. The two neighbors remain locked in a trade war featuring tariffs on tens of billions of dollars in cross-border commerce. Meanwhile, Trump has repeatedly floated the prospect of Canada becoming the "51st state"—a notion firmly rebuffed by Ottawa.
A closer alignment with Europe would mark one of the most dramatic shifts in Canadian foreign and economic policy in generations. The U.S. has historically served as Canada's dominant trading partner, absorbing roughly 72 percent of Canadian exports in 2025, according to data cited by Forbes. Beyond traditional trade, discussions between Ottawa and the EU encompass strategic sectors including energy, artificial intelligence, defense, and critical minerals.
According to , the talks also explore freer movement for goods, services, and workers, alongside joint initiatives in data centers, cloud infrastructure, satellite networks, undersea communications cables, and new export routes for Canadian energy to reach Europe. Relations between Washington and Ottawa began deteriorating after Trump returned to office in January 2025. Over the following months, disputes over tariffs, trade policy and Canadian sovereignty increasingly strained one of North America's closest bilateral relationships.
Carney led Canada's Liberal Party to victory in the April 2025 federal election after campaigning heavily against Trump's tariffs and repeated suggestions that Canada should become the United States' "51st state." Carney argued that Canada's sovereignty was under threat and promised to reduce the country's economic dependence on its southern neighbor. During an Oval Office meeting shortly after Carney took office, Trump again raised the idea of Canada joining the U.S., prompting a firm rebuttal from the Canadian prime minister. Carney responded that Canada was "not for sale," underscoring a growing divide between the two leaders.
Throughout 2025 and into 2026, the U.S. and Canada exchanged tariffs on billions of dollars worth of goods. The dispute expanded beyond trade, spilling into public criticism from senior administration officials and prompting Canada to accelerate efforts to diversify its economic and strategic partnerships beyond the U.S. As tensions intensified, Carney publicly criticized U.S. officials for mocking Canada on social media.
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