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.”

After President Trump’s global tariffs on steel and aluminum took effect, the European Union and Canada announced billions of dollars in levies on American goods. The stock market recovered some recent losses as investors weighed positive news on inflation against continued uncertainty.

Trump slapped similar tariffs on EU steel and aluminum during his first term in office, which enraged European and other allies. The EU also imposed countermeasures in retaliation at the time, raising tariffs on U.S.-made motorcycles, bourbon, peanut butter and jeans, among other items.