US President Donald Trump said on Sunday (September 13) that Canada was the "worst country to deal with", adding that Ottawa was "dying to make a deal".
Earlier in the day Prime Minister Mark Carney said he is to have talks with the European Union on a "unique alliance".
The EU, which has not been flexible about membership rules in the past, is open to the idea of granting Canada a yet-to-be-created status of associate membership, the Wall Street Journal reported, citing unnamed officials both from the EU and Canada.
Canada's escalating trade war with the United States has added urgency to its strategic pivot towards other trading partners.
Relations between Ottawa and Washington have deteriorated sharply since President Donald Trump returned to the White House last year due to disagreements over trade and other issues. The trade dispute has led to tariffs on tens of billions of dollars in cross-border trade.
The U.S. president reiterated his intention to impose new tariffs on cars, trucks and auto parts from Canada beginning January 1.
