Key facts
- EU Trade Commissioner Maroš Šefčovič stated the EU will not mediate the trade dispute between the US and Canada.
- The dispute escalated after Canada walked away from negotiations and the US imposed 50% tariffs on Canadian vehicles.
- Canada retaliated with tariffs on over 700 US imports worth approximately $20 billion.
- Šefčovič expressed support for free and fair trade with low or no tariffs.
- The EU is open to exploring increased cooperation with Canada, including a potential digital agreement and collaboration on critical raw materials.
- Canada is seen as a partner for forging cooperation with CPTPP members.
The European Union will not act as a mediator in the escalating trade dispute between the United States and Canada, according to EU Trade Commissioner Maroš Šefčovič. He told Euronews that while the Commission is prepared to explore various options to deepen cooperation with Canada, it is not in a position to mediate the ongoing trade war.
The trade tensions intensified after Canadian Prime Minister Mark Carney withdrew from negotiations with the Trump administration, citing pressure over the use of the French language. In response, US President Donald Trump announced 50% tariffs on Canadian cars and trucks. Canada retaliated by imposing tariffs on more than 700 US imports, valued at approximately $20 billion (€17.2 billion).
Šefčovič emphasized that "tariffs are taxes which are paid in the end by the economic operators or by the citizens," a stance he has consistently maintained during the EU's own trade disputes with Washington. He reiterated the EU's clear support for "free and fair trade with the lower or no tariffs at all."
Despite the current US-Canada trade friction, Šefčovič acknowledged their close economic relationship and expressed confidence that attempts to resolve the issues will eventually be made. He noted that since the EU and Canada finalized a trade deal in 2016, trade between them has grown by 75%, and suggested further improvements are possible.
Canadian Prime Minister Mark Carney has called for a closer partnership with the EU and is scheduled to attend European Commission President Ursula von der Leyen's State of the Union address. An EU-Canada summit is also planned for later in the autumn. Šefčovič indicated that the EU is ready to explore "all possibilities" to increase cooperation, contingent on Canada's comfort level and ambition. Potential areas for enhanced collaboration include a digital agreement and joint investments in critical raw materials. Šefčovič also sees Canada as a key partner for strengthening ties with members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which collectively accounts for 40% of global trade.