Canada does not want to join the E.U. as a full member and that is not what is being offered.

Canada very much is not “blustering” when it comes to Trump. A big majority of Canadians see sovereignty and less reliance on the US as a massive issue. Canada has embraced China in a way that was unthinkable 5 years ago in a deal intended to hedge against the US. The Canadian Conservative Party lost an election it was thought to have a guaranteed win from and has continued losing seats since then in large part due to their half hearted response to Trump.

I'll go back to my first comment above: What is an "associate member"? We don't know because it's a concept that does not exist but the very name suggests something stronger and tighter than anything that exists with non-members that have very close ties (Norway, Switzerland, Iceland).

Hence I think it is safe to say that this is a lot of bluster, or ar least hyperbole, considering what Canada and the EU might really want and the long and complicated treaty process to define and create an "associate member" status.