Amid a tariff war, Canadians are warming to the idea of strengthening ties with Europe. Analysts view stronger engagement as “not just strategic, but essential.”

Combined, the new tariffs will cost companies billions of dollars, and further escalate the uncertainty in two of the world's major trade partnerships.

The trade war is escalating as President Trump says he may impose additional tariffs on Canada and the EU. Canada has put 25% reciprocal tariffs on nearly $21 billion worth of American imports, while the EU is preparing to levy 25% tariffs on about $28 billion worth of U.