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Canada Pivots To India Amid Trump Tariff Threats

by OB Bureau
January 26, 2026
in India
Reading Time: 1 min read
Canada Pivots To India Amid Trump Tariff Threats

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Ottawa/New Delhi: Facing escalating trade pressures from US President Donald Trump’s administration, Canada is accelerating its pivot towards India, with Prime Minister Mark Carney slated for an early March visit to New Delhi.

The trip, confirmed by India’s high commissioner to Canada Dinesh Patnaik, signals Ottawa’s urgent diversification plan as US tariffs — up to 35% on Canadian goods — threaten economic stability.

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Carney’s itinerary includes signing pacts on uranium supply, clean energy, critical minerals, and artificial intelligence, besides launching negotiations for a Comprehensive Economic Partnership Agreement (CEPA). Patnaik revealed a landmark 10-year, $28 billion deal is on the table, targeting bilateral trade growth to $50 billion by 2030. “India fits perfectly as a large, growing economy needing Canada’s critical minerals,” noted Canada’s Energy Minister Tim Hodgson during his ongoing India visit.

The shift follows a diplomatic thaw after Justin Trudeau’s 2023-2025 allegations of Indian involvement in a Sikh leader’s killing, which Carney has distanced himself from. High-level exchanges resumed post-G20 in November 2025, with Prime minister Narendra Modi hosting Carney and reciprocal staffing boosts at missions. Trump’s “America First” policies hit Canada hard, prompting deals like tariff cuts with China on EVs and canola to unlock C$7 billion in exports.

India, reeling from 50% US duties on textiles and jewelry, welcomes the shift. Carney’s March timing aligns with an AI summit, building on Quad ties and defense-space cooperation. Analysts see it as pragmatic realignment: Canada eyes India’s market of 1.4 billion, while New Delhi diversifies from US reliance.

Canadian officials frame the visit as “bedrock” for Indo-Pacific stability.

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