But they EU doesn't make any software... So unless Canada is willing to go with Chinese software which would kinda invalidate any "moral" ground they have and well frankly the USA wouldn't allow it seems like the USA can take it for granted.
Europe makes lots of quality software, it just doesn't scale economically. And that's an issue with access to capital and to a lesser extent legal fragmentation, not talent or willingness. That's why there's a constant push for markets reforms in the EU, on top of unified corporate structures (one might even call them "federal") being in the pipeline.
Canada just announced a huge deal with China last week. You're wrong on all counts.
Canada's software market was $73B in 2024.
https://www.grandviewresearch.com/horizon/outlook/software-m...