EU Seeks Stronger Canada Trade Ties Amid Uncertainty Over U.S. Tariff Policy

European Union Trade and Economic Security Commissioner Maros Sefcovic expressed confidence on Thursday that the United States will respect the terms of its existing trade agreement with the European Union, following assurances from U.S. officials. Speaking during a visit to Toronto, Sefcovic said he believes Washington will honor the commitments made in last year’s EU-U.S. trade deal.

The comments come amid renewed uncertainty surrounding U.S. tariff policy. Last month, President Donald Trump signed an executive order introducing a 10% tariff on imports after the U.S. Supreme Court invalidated most of his earlier global tariffs. However, U.S. Treasury Secretary Scott Bessent indicated that the tariff level could increase to 15% later this week.

The current EU-U.S. trade arrangement was reached in July at Trump’s Turnberry golf resort in Scotland during talks with European Commission President Ursula von der Leyen. The agreement established a broad 15% tariff rate for most EU exports entering the U.S. market. However, the new tariff surcharge differs from the original deal because it is applied on top of the most-favored-nation tariff rate. As a result, some European exports could face higher overall tariffs than previously expected.

While monitoring developments in U.S. trade policy, the European Union is also strengthening trade relationships with other partners. During the Toronto visit, Sefcovic signed an agreement with Canada’s Trade Minister Maninder Sidhu aimed at expanding EU-Canada trade and simplifying existing trade rules under their current pact.

The agreement enhances cooperation under the Comprehensive Economic and Trade Agreement (CETA), the free trade deal implemented in 2017 that provides businesses with easier access to markets in both regions. It introduces updated rules for resolving investment disputes and launches negotiations toward a new digital trade agreement.

The planned digital trade deal will focus on improving cross-border data sharing, supporting digital services, strengthening cybersecurity cooperation, and encouraging collaboration on emerging technologies. Canadian officials say the negotiations, which represent Canada’s first dedicated digital trade agreement, are expected to conclude within the year.

Both Canada and the European Union are increasingly looking to diversify their trade partnerships beyond the United States. The U.S. remains Canada’s largest trading partner and accounts for nearly 70% of Canadian exports, making the country highly sensitive to shifts in American trade policies.

Canadian Prime Minister Mark Carney has set an ambitious goal of doubling Canada’s trade with countries other than the United States within the next decade. According to Trade Minister Sidhu, the strategy is designed to strengthen economic resilience, protect Canadian workers from external shocks, and reduce reliance on a single major trading partner.

By expanding trade cooperation with Europe and advancing new digital trade rules, Canada hopes to build more balanced international trade relationships while boosting long-term economic stability.