Facing protectionist threats and possible tariffs from US President Donald Trump, Canada is reshaping its foreign policy by pivoting towards India to reduce economic dependence on the US.
Prime Minister Mark Carney is expected to visit India in early March to revive ties and sign key agreements in energy, minerals, uranium, and artificial intelligence.
The shift aligns with Canada’s broader trade diversification strategy as Ottawa seeks to double non-US exports amid rising trade tensions in North America.
Amid mounting trade pressure and protectionist threats from US President Donald Trump, Canada is recalibrating its foreign and economic policy, increasingly positioning India as a key strategic and trade partner. The shift marks a significant departure from the strained India-Canada relations seen during the latter years of former prime minister Justin Trudeau’s tenure.
Canadian Prime Minister Mark Carney is expected to visit India in early March, following India’s Union Budget presentation on February 1, according to news agency reports. The visit is aimed at rapidly expanding bilateral trade and restoring high-level engagement after more than two years of diplomatic chill.
India’s High Commissioner to Canada, Dinesh Patnaik, said the visit could result in agreements covering uranium, energy, critical minerals, and artificial intelligence, reflecting the growing strategic convergence between the two countries.
The renewed engagement comes as both India and Canada face steep tariff challenges from Washington. While India has been hit with higher US tariffs, Canada is confronting the possibility of punitive measures amid escalating trade tensions with the Trump administration. For New Delhi, Ottawa’s pivot adds momentum to its broader trade strategy, which also includes a major trade agreement with the European Union. EU leaders are currently in India as chief guests for the 77th Republic Day celebrations and are expected to sign what officials have described as the “mother of all deals.”
Diplomatic momentum was reinforced by a recent “fruitful conversation” between Canadian Foreign Minister Anita Anand and Indian External Affairs Minister S Jaishankar on the sidelines of Republic Day events. The two leaders discussed strengthening cooperation in artificial intelligence, economic partnerships, and maintaining regular high-level exchanges.
Speaking recently, Anand underlined the urgency behind Canada’s diversification push, stating that the country “won’t be derailed” by threats from Washington. She stressed that Canada is pursuing a long-term strategy to double its non-US exports within a decade.
“That is why we went to China, that’s why we will be going to India and that is why we won’t put all our eggs in one basket,” Anand said.
The pivot comes against the backdrop of an increasingly tense trade environment in North America. President Trump has warned of imposing 100 per cent tariffs on Canadian goods if Canada becomes a transit point for Chinese exports into the United States, citing concerns over goods being routed through Canadian ports.
As economic nationalism intensifies south of the border, Ottawa’s renewed outreach to India signals a decisive effort to safeguard its economic sovereignty through trade diversification and strategic partnerships beyond the US.
