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Canada Turns to the EU as Trump Tariffs Bite
With Washington imposing steep new tariffs, Ottawa is accelerating efforts to diversify trade and deepen ties with the European Union.
Published: July 28, 2026
Canada's trading relationship with the European Union is gaining renewed attention as President Donald Trump's tariff measures put pressure on cross-border commerce with the United States. Officials in Ottawa say the push to diversify export markets away from a single dominant partner is not new, but the latest round of tariffs, covering a range of goods from wine to hockey sticks, has added urgency to the strategy.
Trade between Canada and the EU has grown substantially since the Comprehensive Economic and Trade Agreement began provisional application in 2017, removing nearly all tariffs between the two markets. Analysts note that raw materials, rare earths and energy are likely to be central to future cooperation, as European countries look to reduce their dependence on other suppliers while meeting environmental goals.
Infrastructure remains a challenge. Moving Canadian oil and natural gas to European buyers requires new export capacity on Canada's east and west coasts, and some proposed terminals face opposition from Indigenous and environmental groups. Even so, officials on both sides describe the relationship as an increasingly important part of Canada's broader strategy to reduce reliance on the U.S. market, alongside growing trade discussions with Asia and other regions.
