Canada will strengthen its ties with the EU in response to Trump's trade war.

Canada aims to strengthen its economic ties with the European Union, prompted by the threat of tariffs from the United States.

This was reported by RBK-Ukraine citing Reuters.

On Saturday, February 8, Canadian Trade Minister Mary Ng held a meeting with EU Trade Representative Maros Sefcovic.

"Trade agreements are one thing, and we have seen some really significant figures. But what else can we do to help Canadian businesses access the markets of any of the 27 EU member states... and what more can we do for the same in Canada?" the minister noted.

According to Ng, priority areas for cooperation with Brussels will include minerals and small businesses. The EU, in turn, is interested in establishing a partnership with Canada for the supply of cobalt, lithium, and nickel, which are crucial for the energy transition. This is necessary to reduce dependence on these metals from China.

In 2017, the EU and Canada signed a free trade agreement. Bilateral trade between the parties increased by 65%, and in 2021, a partnership was established in the production and supply of raw materials.

Diversification of Exports

Canada is also looking to diversify its exports and set a goal in 2018 to increase exports beyond the U.S. by 50% by 2025. Minister Ng stated that the country is on track to meet or exceed this goal.

In December 2024, Canada concluded trade agreements with Indonesia, and last week with Ecuador, making significant efforts to advance in the Indo-Pacific region. Next week, the Canadian Trade Minister will lead a delegation of over 200 business representatives visiting Australia, Singapore, and Brunei.

"We are sitting at the table with Southeast Asian countries, that is, with the Association of Southeast Asian Nations. In December, I visited a very large delegation of Canadian businesses in the Philippines, Indonesia, and the markets of Vietnam, Malaysia, Japan, and Korea," Ng added.

Trump's Trade War

On February 1, U.S. President Donald Trump signed an order introducing 25% tariffs on imports from Canada and Mexico, as well as 10% tariffs on goods from China.

However, on February 3, Trump suspended the implementation of tariffs for imports from Mexico and Canada. He agreed to a 30-day pause in exchange for concessions from the two countries regarding border security and crime fighting.

Ottawa threatened retaliatory tariffs and lawsuits against the U.S. Trade Minister Ng stated that if tariffs are imposed, Canada could challenge Washington's actions in the World Trade Organization (WTO).

To learn about the potential consequences of Trump's new trade war for the world and Ukraine, read our analytical material.