How Canada aims to balance trade and diplomacy between China, India, and the U.S.
In today’s tense geopolitical climate, Canada-China-India relations have become a defining test of Canadian diplomacy.
Canadian Foreign Minister Anita Anand embarked on a significant diplomatic trip to improve Canada’s relationships with China and India. Anand traveled to New Delhi, Mumbai, Singapore, and Hangzhou to repair damaged relations while supporting Canadian interests in trade this week.
Canada-China-India Relations: Diplomatic Visit by Anita Anand
Anand’s visit comes at a precarious moment. The United States under President Trump has ratcheted up its tariff war with China, imposing a new 100 percent tariff on Chinese products, among other tariffs. Trump hinted over the weekend that, perhaps, he could support a temporary ceasefire. For Canada, it is both an opportunity and a challenge to diversify trade and yet stick to its North American allegiances.
Canada’s Shift Under Prime Minister Mark Carney
Prime Minister Mark Carney has taken a page from the book of economic pragmatism over ideology, unlike Trudeau’s internationalism. “It’s about going back to being a sovereign nation,” Anand said to Bloomberg News, explaining that diplomacy is really about one sentence — ‘what’s best for Canadians.’
Trade Relations and Tariff Challenges
Under Carney’s leadership, Ottawa has kept tariffs on Chinese electric vehicles, steel, and aluminum consistent with U.S. trade policy. At the same time, Canadian negotiators are pushing for Washington to remove tariffs on steel and aluminum while offering a stronger North American supply chain as a counter to Chinese dominance.
Retaliation from China and Public Opinion in Canada
China has retaliated with tariffs on Canadian canola, pork, and seafood, but China also recently extended the time period for its investigation into Canadian canola exports, which indicates some possibility for dialogue. Western Canadian farmers have recently called on Ottawa to explore reducing EV tariffs as a means of regaining access to Chinese markets for agricultural products.
On the ground, public sentiment locally has changed regarding tariffs on EVs. A recent poll from Bloomberg News’ Nanos Research Group indicates that only 44 percent of Canadians support the tariffs, down from last year’s similar survey of 63 percent. Canadian steel, aluminum, and auto producers still support protectionism and believe it is necessary to protect national competitiveness.
Despite the tension in trade, Anand stated, Canada and China can still work together on important things, such as energy and climate change. Canada is hoping to increase the sale of liquefied natural gas to Asia, with Carney positive about seeing Chinese President Xi Jinping at next month’s APEC meeting in Korea.
With India, relations remain tenuous. Diplomatic tensions rose in 2023 following Trudeau’s accusation that New Delhi was involved in the killing of a Sikh separatist on Canadian soil- something that Prime Minister Narendra Modi rejected. Two years later, Canada and India are tentatively restarting relations, with new ambassadors appointed and information-sharing arrangements established.
Looking Ahead: Step-by-Step Diplomacy
Anand said she has spoken to Indian External Affairs Minister S. Jaishankar regarding transnational repression and will continue that discussion. She cautioned that trade discussions will follow after more routine diplomatic relations are established.
“We are going step by step,” Anand explained. “Our goal is to develop a practical framework whereby the leaders can agree on a clear work agenda, before rebuilding the trade relationship.”
You can read the full Bloomberg interview with Anita Anand for more context on Canada’s evolving trade strategy here- http://You can read the full Bloomberg interview with Anita Anand for more context on Canada’s evolving trade strategy
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