Prime Minister Mark Carney is pursuing a "middle powers doctrine" to bolster Canada's relationship with the European Union. This strategic shift comes as US President Donald Trump threatens to remove Canadian-made goods from federal procurement schedules.

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Trump’s $50 billion threat to Canadian procurement

The tension between Ottawa and Washington has escalated following President Donald Trump's recent directives to US federal agencies . As the report states, Trump has ordered agencies to identify and remove Canadian-origin goods from federal civil government procurement awards. This move follows a Truth Social post where Trump claimed that Canadian items in these schedules represent more than $50 billion in annual value.

Trump has further characterized Canada's trade policies as a "trade scam," aleging that the nation prevents American small businesses from accessing its procurement markets. In response to these tensions, the US President has warned that if Canada pursues associate membership with the European Union,he will treat the move as a "hostile act" and impose heavy tariffs on Europe.

Carney’s September 17 Strasbourg address

In an effort to counter American protectionism, Prime Minister Mark Carney addressed the European Parliament in Strasbourg, France, on Thursday, September 17, 2026. During this address, Carney outlined a vision for a unique alliance with the European Union, aimed at protecting Canadian sovereignty and independence.

This "middle powers doctrine" is designed to provide a buffer against the growing unpredictability of US trade policy and the rise of global autocracy . The report notes that this shift is occurring against a backdrop of seismic geopolitical changes,including Russia's invasion of Ukraine, China's encroachment on Taiwan, and the recent seizure of Venezuelan oil by the United States.

A combined GDP to rival the United States

The potential expansion of the European sphere could create a massive geopolitical counterweight to the United States . If Canada, Australia, Wales, Northern Ireland, and Scotland all successfully integrate into this new bloc, their combined GDP would closely rival that of the United States.

Such an ambitious effort would aim to provide Canadian businesses with lucrative, stable markets that reward long-term cooperation. By diversifying away from a singular reliance on the world's largest economy, Carney seeks to insulate the Canadian consumer from the instability and distrust currently characterizing North American trade relations.

The legal hurdles for Australia and Scotland

Despite the momentum behind this new alliance, significant questions remain regarding the actual implementation of these ties. While several regions and nations have publicly announced their wishes to join the bloc, it remains unverified whether they will successfully cement their status as formal members.

Furthermore, Ottawa and the EU are currently navigating an "intricate labyrinth" of legal and constitutional challenges to make their relationship binding. It remains to be seen if these complex legal frameworks can be resolved quickly enough to provide the stability the Canadian government is seeking in an increasingly hostile global landscape.