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Brinks Report > Blog > World > Trump’s Trade War Forces Former Foes India and Canada to Rethink Relations
World

Trump’s Trade War Forces Former Foes India and Canada to Rethink Relations

Brinks Report
Last updated: March 26, 2025 5:14 pm
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Trulli

Facing Trump’s trade war, India and Canada may bury the hatchet—but can old wounds heal?

Tensions between India and Canada hit a low in 2023 when then-Prime Minister Justin Trudeau accused Indian agents of involvement in the killing of Khalistan separatist Hardeep Singh Nijjar. India dismissed the claims as “absurd,” leading to tit-for-tat diplomat expulsions and frozen ties.

Now, under new Canadian PM Mark Carney, both nations are quietly working to mend fences. The reason? A common challenge: Donald Trump’s looming tariffs.

Trulli
  • Trade Troubles: Trump’s sweeping tariffs, set for April 2, threaten both economies.
  • Diversify or Suffer: Canada’s Carney wants to “rebuild ties with India” to offset US trade risks.
  • India’s Condition: New Delhi insists Canada must stop tolerating “extremist elements.”

Also Read: Sovereignty at Stake: Canadian PM Calls Snap Election Over Trump’s Threats

Signs of a Diplomatic Reset

  • Intel Talks: Canada’s spy chief attended a security meeting in Delhi last week.
  • Possible Modi-Carney Meet: The two leaders might talk at June’s G7 summit.
  • Envoy Returns: Both nations may soon restore expelled diplomats.

While trade pressures are pushing reconciliation, the Khalistan issue remains a thorn. India demands Canada crack down on separatists, while Ottawa insists on “respect for Canadian laws.”

If Trump’s tariffs hit hard, India and Canada could fast-track cooperation—or let old grudges derail progress. One thing’s clear: economics might succeed where diplomacy alone failed.

Also Read: U.S. Tariffs Spark Fifth-Day Oil Rally—Will OPEC+ Intervene?

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TAGGED:diplomatic tensionsDonald Trump tariffsIndia Canada relationsKhalistan issueMark CarneyNarendra Modi
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ByBrinks Report
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Brink's Report is your go-to destination for insightful analysis, breaking news, and thought-provoking commentary on global affairs, politics, economics, and culture. Founded with a mission to deliver accurate, unbiased, and in-depth reporting, Brink's Report empowers readers to stay informed and engaged with the world around them.
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