In its trade conflict with the United States, Canada is seeking a closer partnership with the European Union. Europeans should be prepared to take a clear position, argue Johannes Thimm and Nicolai von Ondarza.
In seeking partners for his “middle powers” strategy, Canadian Prime Minister Mark Carney is looking to Europe first and foremost. On the day he broke off trade talks with the United States, he announced that Canada would negotiate a “stronger and deeper security and economic partnership” with the EU. On 17 September, he is also due to address the European Parliament.
Canada has close economic ties to the United States. However, because Canada’s economy is far smaller than that of its neighbour, it is at a severe disadvantage when it acts alone. Carney hopes that the EU will provide a counterweight; he explicitly points to it as the world’s second-largest economy and a like-minded partner.
Canada moves towards a deeper partnership with the EU
The EU is an obvious partner for Canada, and the two sides have deepened their already close relationship since Trump’s return to the White House. In 2025, the EU and Canada agreed a Security and Defence Partnership. Canada became the first and, to date, the only non-EU country to be granted access to defence procurement under the €150 billion SAFE programme. Ottawa has also begun to look to Europe for major defence-procurement projects, most recently with its preliminary decision of historic significance to procure submarines from Germany. CETA, which has been provisionally applied since 2017, already provides an ambitious free trade framework that reduces trade barriers and includes investment protection.
Europeans are also increasingly welcoming Canada into a number of their flexible formats. In May 2026, Carney became the first non-European to attend a meeting of the European Political Community; in September, the Canadian foreign minister was invited to a meeting of EU foreign ministers; and in October, the Canadian trade minister will take part in an EU Council meeting. In discussions about a broader European security architecture, Canada now belongs to the group of Europe’s closest partners, alongside Norway, Ukraine and the United Kingdom.
From diversification to mutual support
There is, however, a clear imbalance in the level of political support Ottawa and Brussels have offered one another. When Donald Trump threatened to take control of Greenland, the Canadian government stressed that Greenland is part of Denmark, a NATO ally. Europe, by contrast, has largely remained silent on Trump’s suggestion that Canada should become the 51st US state. Brussels has also been notably restrained over the trade conflict initiated by the Trump administration with Canada. Although the chair of the European Parliament’s Committee on International Trade, Bernd Lange, has called for solidarity with Canada, EU Trade Commissioner Maroš Šefčovič has ruled out either mediating or taking sides. Yet as threats and trade measures against Canada intensify, the gap between the principles the EU seeks to uphold and the conduct of the United States is widening.
Openly criticising the US administration’s behaviour towards Canada would undoubtedly entail political and economic costs for the EU, including for Germany. But restraint also has a price. The Trump administration is pursuing a “divide and rule” strategy: It prefers dealing with individual states in order to exploit its power advantage in each bilateral relationship. The more closely countries coordinate, however, and the more united they are in resisting US threats and trade pressure, the greater the costs Washington will face. Public support in the United States for Trump’s confrontational approach towards Canada and Europe is limited. If the economic costs for Americans rise, that support is likely to erode further.
Europe should therefore use the EU–Canada summit at the end of October to take up Carney’s offer of a deeper economic and security partnership. Commission President Ursula von der Leyen has even proposed a novel “Associate Membership” for Canada. To put this into practice, two sides should explore mutually beneficial ways to deepen their cooperation; options under discussion include critical raw materials and energy, Arctic security, artificial intelligence and Canadian participation in European defence cooperation. Beyond this, the EU and Canada should agree on what further US escalation would trigger a coordinated response. Such an approach would transform the EU from a partner for diversification into a partner of mutual support.
Carney’s call for an alliance of middle powers has resonated around the world. Canada and the EU share many goals and values. A deeper partnership could therefore serve as a model for cooperation with other middle powers. Resisting Trump’s attempts at coercion more firmly and collectively would strengthen the EU’s credibility as a global actor and could pave the way for broader efforts to defend a rules-based international order.
About the authors
Dr Johannes Thimm is Head of The Americas Research Division at SWP.
Dr Nicolai von Ondarza is a Senior Fellow in the EU/Europe Research Division at SWP.