Canada is set to host a summit with the European Union in Montreal from October 29-30, seeking to bolster bilateral strategic and economic ties as its relations with the United States decline. The EU has proposed making Canada its first 'associate member' to deepen cooperation on trade, technology, defence, energy, critical minerals, AI, research, and financial services. This move comes after US President Donald Trump imposed a 50% levy on $20 billion of Canadian goods, prompting Canada to retaliate with equivalent tariffs and seek to reduce its economic dependence on the US. Trump has threatened to impose new, very heavy tariffs on Europe if Canada's potential associate membership is perceived as hostile to the US.