After decades in which the United States was its main economic and strategic partner, Canada is beginning to reconsider the direction it wants to take. According to The Wall Street Journal, amid the trade war, President Donald Trump’s threats to make Canada the 51st state and strained relations with Washington, Prime Minister Mark Carney is pursuing a significant rapprochement with Europe — including exploring a model that would allow Canada to integrate more deeply with the European Union.
According to the American newspaper, shortly after Canada and the U.S. became embroiled in a bilateral trade war, Carney began calling European leaders and asking to take Canada’s relationship with the European Union to the next level. For months, he spoke with leaders across the continent and even with members of some of Europe’s lesser-known royal families in an effort to explore how his country could become more closely integrated with the 27-member bloc.
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Seeking a partner across the Atlantic. Carney and Trump at the White House
(Photo: Jim WATSON / AFP)
In fact, the Journal reported, the threat to turn Canada into the 51st U.S. state pushed America’s northern neighbor so close to Europe that leaders began half-jokingly referring to it as the European Union’s newest member. According to people familiar with the matter who spoke with the American newspaper, Carney instructed his special envoy to Europe to explore the most ambitious options available, short of full EU membership.
Working groups are still hammering out the details, but Carney has even floated a new designation for Canada to European leaders: “associate member of the European Union.” Officials on both sides told the Journal that the EU, which is not known for flexibility in enforcing its membership rules, is open to the idea.
European and Canadian officials are exploring ways Canada could informally integrate into Europe’s market in areas such as energy, artificial intelligence, critical minerals and, with greater urgency, defense. In practical terms, that could eventually allow goods and workers in those sectors to move freely between Europe and Canada. According to two people familiar with discussions between Carney and French President Emmanuel Macron, they even discussed the possibility of allowing Canadians to live and work in Europe without a visa.
French president proposed visa exemption. Trump, Carney and Macron at the G7 summit
(Photo: REUTERS/Amber Bracken)
In the energy sector, Carney is promoting the construction of pipelines that would allow Canada to redirect to Europe gas that currently flows through the United States. Officials are also considering expanding the transportation of goods via Arctic shipping routes. The initiative comes after decades in which the Canadian economy became increasingly integrated with the U.S. economy.
The White House is betting that the two countries’ mutual dependence will draw Canada back to the negotiating table more willing to make concessions. Carney, however, believes he can fundamentally change that dynamic.
But such a new alliance would also have consequences: Canada may be reluctant to surrender any degree of sovereignty in order to integrate with the European Union. Countries that trade freely with the EU, for example, generally contribute money to its budget, accept its workers and comply with its regulations.
In private discussions, according to the Journal, some of Europe’s most senior officials have expressed concern about the challenge of reconciling Carney’s ambitions with reality. During their meetings, EU officials have tried to determine whether the Canadians are merely using Europe as leverage in their negotiations with Washington. On Thursday, Carney is expected to address the European Parliament and lay out his vision for strengthening ties with Europe.
Trade war and 'annexation' in a social media post
About two-thirds of Canadian exports currently cross the U.S. border, but two and a half weeks ago, in a sharp response to the sweeping tariffs Trump imposed on Canada, the country announced that it would impose tariffs of up to 50% on imports from the United States. The measures cover about $20 billion worth of goods and some 700 products. Tariffs of 50% will be imposed on steel, dairy products, electrical appliances and agricultural equipment, among other goods.
The previous weekend, the Trump administration imposed 50% tariffs on Canadian goods following the collapse of talks on a trade agreement between the two countries. The Canadian tariffs took effect Sept. 8 and are expected to drive up prices for American consumers. Canada is the United States’ second-largest trading partner after Mexico. In the first half of 2026, about 14% of all U.S. exports went to Canada.
Trump 'annexes' Canada to the U.S. in a social media post
Three days after Canada’s announcement, Trump signed an executive order renaming Lake Ontario “Lake America,” marking a further escalation in relations between the two countries.
“The lake change, 'Lake of America', was something I've been thinking about for a long time,” Trump told reporters in the Oval Office. “If you think about it, we have a gulf and we have a lake. Now, all we need is an ocean. So maybe we'll have to change the name of the Atlantic and/or the Pacific. Maybe we'll change them both.”
Asked why he was so intent on antagonizing Washington’s allies, Trump replied: “The Canadian officials have treated us very badly. They're nasty people.”
"People oftentimes they'll ask me who's the worst to deal with on trade, and I said that's easy, Canada. They are the worst to trade, and they feel entitled, and just we can't have that," he added
Over the past month, Trump has published a series of posts attacking Canada after declaring his desire to “annex Canada and make it the 51st state” and even depicting the country as part of the United States.