Canada’s Carney Leads Trade Revolt, Offering a Path for Middle Powers Facing US Tariff Pressure

International Desk

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Despite having a trade relationship with the United States worth about $872 billion in goods and services by 2025, Canada is gradually leaning towards the European Union in response to reciprocal US tariffs.

This is a kind of new direction for middle-power countries that have been forced to pay high tariffs under pressure from the United States.

Although many products on which the United States relies heavily, including energy, essential minerals and fish, are currently exempt from tariffs, that could change.

EEE Associate Member Proposal

Speaking to the European Parliament in Strasbourg on September 17, Carney welcomed European Commission President Ursula von der Leyen’s proposal to make Canada the EU’s first “associate member.” Carney said Canada and Europe needed deeper cooperation in areas such as critical minerals, defense, AI, energy security, space and payments. Trump called the proposal “ridiculous” and threatened to impose tariffs on the EU if it was deemed a “hostile move.”

Latest statistics on bilateral trade

According to Statistics Canada, Canadian exports of goods to the United States fell 5.8 percent to C$555.9 billion in 2025, while exports to the EU rose 23.4 percent to C$42.8 billion. Total merchandise trade between Canada and the EU in 2025 was C$134.3 billion. While exports to the EU increased, they still accounted for about 8 percent of exports to the United States.

The statistics agency says traders may have brought forward shipments before the new tariffs took effect, which could have had some time-lag on August’s export growth.

Carney has pledged to build new trade and military alliances with other countries, but Canada still relies on the United States for about 70 percent of its exports.

New trade route to Europe

Canada is also looking for new routes beyond its US-dependent infrastructure. This includes the Port of Churchill in Manitoba on the Arctic route. In early September, a grain ship loaded for the first time since 2020. About 30,000 tonnes of durum wheat supplied by Saskatchewan’s AGT Foods set off for Europe. A total of more than 100,000 tonnes of grain is expected to go to European buyers in three shipments this season. In addition, zinc concentrate and the port’s first potash exports are also planned.

Along with Churchill, the east coast ports (Montreal and Halifax) are major hubs for trans-Atlantic trade; containerized cargo and other large-scale goods are already being shipped directly to European and Baltic ports.

Northern and Arctic Affairs Minister Rebecca Chartrand said the investment is part of a larger initiative to find new markets in the context of changing relations with the United States.

Corny is gaining support within the country:

Sovereignty is a core issue of anger in Canada toward the United States. Trump’s “51st state” comment has fueled that anger.

Opposition leader Pierre Poeliev also rejected it, saying that Canada will never become the 51st state of the United States.

A September survey by Research Co. found that 82 percent of Canadians view U.S. tariffs as a threat to the country, and 43 percent now see the United States as a military threat.

Sixty-five percent of Canadians support Carney’s handling of the tariff crisis, compared with 41 percent for Poulenc. A survey by Abacus Data found that 77 percent of Canadians said they would avoid or buy as few American goods as possible. Of those who were able to travel to the United States, 52 percent canceled their trips.

Closer ties with Europe are also gaining popularity. In an Abacus poll, 81 percent of Canadians supported greater engagement with the EU, while an Oct. 13 Nanos-Globe and Mail poll found 60 percent favored a partnership with Europe beyond trade. Only 6 percent opposed it.

However, the opposition Conservative Party has a mixed position. Poeliev supports free trade and NATO cooperation with the EU, but criticizes the concept of “associate membership”, saying that Canada should not be subject to EU taxes, EU laws or the EU’s open immigration policy. His party claims that Carney cannot proceed without parliamentary approval. Carney said that the enhanced partnership with the EU would be discussed in parliament and go to a final vote.