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World

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

Brinks Report
Last updated: March 26, 2025 5:14 pm
Brinks Report
Trump's Trade War Forces Former Foes India and Canada to Rethink Relations

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.

  • 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?

TAGGED:diplomatic tensionsDonald Trump tariffsIndia Canada relationsKhalistan issueMark CarneyNarendra Modi
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