Trump threatens 'serious tariffs' on EU over proposal to make Canada 'associate member'

Michael Race Business and economics reporter

Trade is top of the priority list for Canada as it looks to the world for opportunities to reduce its reliance on the US due to its bitter tariff war with its North American neighbour.

Prime Minister Carney has found a keen suitor in the European Union, which has also been in President Trump's tariff firing line.

But this is not a new trading relationship being created, it appears to be a more deepening of ties in the bid to secure some sort of stability that businesses can rely on to boost both economies.

Canada and the EU have had a trade agreement in place since 2017, which eliminates most, but not all, taxes on goods being shipped across the Atlantic. The EU is Canada's second largest trading partner, after the US.