Canada and the US are locked in an escalating trade dispute, with each side imposing tit-for-tat tariffs after bilateral talks collapsed last month." Today our societies are being battered by new storms," Carney said during his address, naming them as climate change, "the erosion of democratic norms" and the "weaponisation of trade"."

Economic integration is now being weaponised, tariffs being used to exert pressure," he said." Financial mechanisms have been used for coercion.

Supply chains constitute weak points to be exploited." He said a Canada-EU alliance would create a "beacon for other democracies", while stressing the two sides were not seeking to form a new power bloc."

I am not proposing a third bloc in order to become a great-power rival - only with better manners," he told MEPs." This is about sovereignty, our ability to live as we wish.

We do not seek power to dominate others." Asked about the proposal on Wednesday, Trump told reporters: " If I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe, on many things."

If it's a good intention, that's fine. If it's a bad intention, we'll put very heavy tariffs on Europe, which is a possibility."

"" Canadians are united that nobody is going to tell us what language we speak, no-one is going to dictate our culture, or with whom we can strike agreements internationally," he added. Speaking at the European Parliament on Wednesday, von der Leyen said she wanted Canada to become the EU's first associate member, with closer cooperation in areas such as manufacturing, technology, defence, energy critical minerals and economic security.

It is unclear exactly what that relationship would look like because the "associate member" status does not currently exist within the EU and could take years to implement. Any new arrangement would require the agreement of all 27 EU member states, with some governments having previously expressed reservations about creating a new form of membership.

The EU and Canada already have a free-trade agreement, and cooperate in areas including trade, defence and research. He said Canada could supply liquefied natural gas and hydrogen to support European energy security, while benefiting from Europe's expertise in clean-energy technologies.

He also proposed pooling technological resources and deepening "people to people ties", including allowing young people to "work, study and live where they want on either side of the Atlantic" through Canada joining the EU's Erasmus+ programme. A Canada-EU summit is due to take place in Montreal at the end of October, where Carney said they would "drill down the details".