Carney Urges Canada-EU Alliance as Trump Threatens Tariffs Over 'Associate Member' Plan

Canadian Prime Minister Mark Carney called on Canada and Europe to stand together to defend their markets, democracies and the rule of law, in a speech to the European Parliament in Strasbourg on Thursday that drew warm applause.

His address came a day after European Commission President Ursula von der Leyen proposed creating an "associate member" status for Canada during her annual State of the Union speech, which Carney attended. The idea, she said, was meant to deepen ties among allies in what she described as "an openly hostile world".

Carney did not repeat the phrase "associate member", but said he valued the ambition behind it. "Europe and Canada are each strong. Europe and Canada are even stronger together," he told lawmakers. He later told reporters that how the EU chooses to describe any future relationship is a matter for Brussels, and that the substance of an agreement matters more than its name.

The Canadian leader rejected the suggestion that he was building a rival power centre. He said he was not seeking a "third bloc" to act as a great-power competitor to Washington and Beijing "only with better manners" — a line that drew laughter. Instead, he said, the goal is resilience, so that no outside power can control open markets, weaken sovereignty, threaten territorial integrity or undermine democratic freedoms.

Trump threatens trade action

Late on Wednesday, U.S. President Donald Trump threatened to act against the EU if it pursued the proposal, calling it "laughable". He said that if he judged it a hostile step, he would impose "very serious tariffs" or halt trade with Europe on many items, while adding that a good-faith gesture would be acceptable.

The European Commission pushed back, saying the proposed strengthening of ties with Canada is not directed against anyone and is intended to bolster common strength. Asked about the threats, Carney said Canadians are united in rejecting any attempt to dictate their language, culture or choice of international partners.

France's Europe Minister, Benjamin Haddad, said the United States has no power to veto the EU's geopolitical choices, telling a French television channel that it is not for Washington or anyone else to decide the political direction of Europeans.

Questions over the proposal

The associate membership idea has yet to be detailed and would require approval from EU member states. One EU diplomat reacted with surprise when it was announced, saying its meaning was unclear and voicing concern that the Commission chief was overpromising. A second diplomat on Thursday described it as an unfortunate proposal that had never been discussed with member states.

Carney listed several areas where Canada wants deeper cooperation with the EU, including critical minerals, defence industrial capacity, artificial intelligence and computing, energy security, space and payments. He also pointed to digital trade and to building more secure broadband links between Europe and Asia through their shared geography.