Canada seeks closer ties with China and India amid U.S. tariff turmoil

Canada has announced plans to strengthen its ties with China and India amid ongoing trade tensions with the U.S. The country’s Foreign Minister Anita Anand plans to meet her counterparts from both countries to lay the groundwork for boosting investments and trade in the interest of Canadians.

Anand said her task is delicate and complex because her country’s disputes with both Asian countries are serious. She pointed out that any move to ease the tensions could trigger President Donald Trump’s wrath. Trump has threatened to impose an additional 100% tariff on China, causing equity markets to nosedive despite the U.S. president signaling openness to a truce.

However, the Foreign Minister argued that Canada is taking the same precautionary steps as every other country, which revolves around prioritizing the interests of its businesses and labor force. Prime Minister Mark Carney has prioritized economic interests above all else, scrapping most of the former Prime Minister Justin Trudeau’s policies on Canada’s foreign trade.

Anand says sovereignty is crucial in international relationships

The Foreign Minister said being a sovereign nation is crucial for Canada to balance its relations with the U.S. and China. Given the current geopolitical environment, she emphasized the importance of maintaining stable relations with major global economic players. 

Prime Minister Carney’s negotiating team seeks to strike a deal with the U.S. that will offer some relief from Trump’s tariffs. Their pitch mainly focuses on fortifying the North American supply chain to counter China. Trudeau previously joined former U.S. President Joe Biden in putting up a tariff wall against Chinese EVs, steel, and aluminum.

Meanwhile, China has imposed massive tariffs on Canadian seafood, canola, and pork, although it has extended its deadline for investigating Canadian canola. Carney says this will allow time for more negotiations as Western Canada urges him to drop the EV levies if it will remove tariffs on food exports.

“It goes back to being a sovereign country…Canada is going to approach the relationship with China guided by one principle — acting in the best interest of Canadians.” 

–Anita Anand, Canada’s Foreign Minister

The Canadian Prime Minister believes there is potential for positive Canada-China trade relations in the energy sector. Carney expects to eventually meet President Xi Jinping, hoping to get the opportunity during the upcoming Asia-Pacific Economic Cooperation summit in South Korea. He is also bullish on exporting more Canadian liquefied natural gas to Asia. 

Anand also pointed out that China and Canada could still come together to push for climate change. She added that Canada already has many businesses actively engaged in that space.   

Canada normalizes diplomatic relations with India

Anand observed that Canada is gradually normalizing diplomatic relations with India under Prime Minister Carney. Each of the two countries has reportedly appointed new ambassadors and established structures for cross-border interactions. The Foreign Minister recently raised concerns about transnational repression during her meeting with India’s External Affairs Minister, Subrahmanyam Jaishankar, last month, and is expected to reiterate the issue at their next meeting.

However, Anand acknowledged that the progress towards a trade deal with India has always been sluggish. She added that further discussions would follow later, after both countries agree on a roadmap for building stronger ties. 

A joint statement from Anand and Jaishankar revealed that Canada and India will initiate ministerial-level discussions on bilateral trade, followed by a Canada-India CEO Forum in early 2026. They agreed to re-establish ministerial-level talks on energy and identify how Canada can supply India with minerals. 

Both ministers also believe that a strong, resilient bilateral relationship between the two countries is essential during the current period of uncertainty and rising geopolitical issues. They emphasized the importance of reviving the Canada-India relationship to enhance economic cooperation and create opportunities. Anand and Jaishankar also claimed that the partnership is expected to help mitigate vulnerabilities stemming from shifting alliances in global trade.   

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