Europe calls Canada its closest outside relationship ever despite Trump's tariff threat

Summary

On September 16, Ursula von der Leyen told the European Parliament, with Mark Carney in the audience, that she wanted Canada to become the first associate member of the European Union. The same day, Donald Trump called the idea laughable and threatened tariffs on Europe over any "hostile act." Carney welcomed the ambition but avoided the title.

Germany objected during six weeks of drafting, and by October 28 the phrase was gone from the joint declaration. At the Montreal summit, Carney used the term himself, set a June 2027 deadline for closing the deal, and heard Antonio Costa describe the partnership as the EU's closest relationship ever with a country outside the bloc. Canada concluded a digital trade agreement and a critical minerals investment deal, and gained access to a European supercomputing initiative. The stakes for Ottawa are trade diversification: 71.7% of merchandise exports went to the United States in 2025.

Berlin's stated objection was legal, since diplomats said the status has no basis in the treaties and no content yet. Officials also suspected a second motive, because Merz had floated the idea first for Ukraine, which turned it down. Any final arrangement will go to Canada's Parliament for a vote after March ministerial talks and the June 2027 summit.

Key points

• Carney was the first non-European head of government to attend the EU State of the Union.
• Costa called the partnership the EU's closest relationship ever with a country outside the bloc.
• Europe's Jupiter supercomputer finishes in 1 day what takes Canada's top research computer 6 months.
• 71.7% of Canada's merchandise exports went to the US in 2025.
• Carney's goal: double exports to non-US markets within a decade.
• Next steps: ministerial talks in March 2027, leaders' summit in June 2027, then a vote in Canada's Parliament.

Questions answered