Rising US Pressure Forces Policy Rethink
Donald Trump’s aggressive trade stance is increasingly reshaping Canada’s foreign policy. As a result, Ottawa is moving faster to reduce its reliance on the United States. In recent months, Trump has threatened steep tariffs and, moreover, repeatedly referred to Canada as a possible “51st state.” Consequently, these remarks have intensified concerns over economic pressure and sovereignty. Therefore, Prime Minister Mark Carney’s government has prioritised trade diversification. In this shifting landscape, India has emerged as a key strategic partner.
India Visit Signals Diplomatic Reset
Meanwhile, Prime Minister Mark Carney is expected to visit India in early March, shortly after New Delhi presents its Union Budget. At the same time, senior Canadian ministers have begun parallel engagements. Notably, the visit aims to rapidly expand bilateral trade after more than two years of strained ties. In addition, talks are expected to cover uranium, critical minerals, clean energy, and artificial intelligence. Furthermore, the outreach follows a productive exchange between Canadian Foreign Minister Anita Anand and India’s External Affairs Minister S Jaishankar during Republic Day celebrations. As a result, both sides now appear ready to rebuild momentum.
Shared Tariff Burden Brings Partners Closer
Similarly, India and Canada face mounting pressure from Trump’s tariff regime. Currently, the US imposes a 50% tariff on Indian goods and a 35% tariff on Canadian exports. Because of this, negotiations on a Comprehensive Economic Partnership Agreement have gained pace. Importantly, the proposed pact aims to raise bilateral trade to $50 billion by 2030. Moreover, Canada seeks access to India’s expanding market, while India wants secure energy and mineral supplies. In contrast to China, Ottawa increasingly views India as a stable democratic partner.
Sovereignty and Strategy Shape Ottawa’s Pivot
Beyond trade, Canada’s pivot reflects deeper sovereignty concerns. For instance, Trump’s remarks have triggered debate in Ottawa about economic vulnerability. However, experts argue that trade pressure poses a greater risk than military action. Therefore, Canada is increasing defence spending and strengthening Indo-Pacific ties. In this context, closer engagement with India offers strategic balance. At the same time, Canadian leaders stress that relations with Washington remain vital. Nevertheless, the message remains firm. As Minister Anita Anand stated in Davos, Canada will diversify—and it will never become the 51st state.
