Canada is encouraging strengthening ties with India and China, as it continues trade talks with the US administration, that has escalated the tariff war with Beijing. Canadian foreign minister Anita Anand is meeting with her counterparts from China and India to boost trade and investment and also met Prime Minister Narendra Modi on Monday in Delhi.
Apart from New Delhi, Anand this week is travelling Mumbai, Singapore and Hangzhou in China, looking to ease disputes with Asia's two most populous countries. These efforts to ease tensions need to be taken carefully to avoid triggering a reprisal from US President Donald Trump.
According to Anand, Canada is following the same approach of putting its workers and business first, with every country, something reflecting a clear shift under PM Mark Carney, who has prioritised the economy.
In an interview with Bloomberg, when asked how Canada can balance its relationships US and China, Anand said, “It goes back to being a sovereign country.”
Anand said that having a stable relationship with a major global economic player is very crucial in this geopolitical environment. “Canada is going to approach the relationship with China guided by one principle, which is acting in the best interest of Canadians,” she added.
Canada-India relation
In the context of Canada-India relations, the talks on a limited trade agreement broke off in 2023 just before Canada's allegations, under the them PM Justin Trudeau, against India of orchestrating the murder of a Sikh separatist.
{{/usCountry}}In the context of Canada-India relations, the talks on a limited trade agreement broke off in 2023 just before Canada's allegations, under the them PM Justin Trudeau, against India of orchestrating the murder of a Sikh separatist.
{{/usCountry}}Under Carney, Canada has taken steps to normalise diplomatic relations with India, with both countries appointing new ambassadors and setting up a framework to share intelligence on cross-border crimes.
Talking about the relationship getting better, Anand said that in 2023 the relationship was at a standstill, "here we are in October of 2025, two years later, and we have high commissioners in place and I’m travelling to meet with Minister Jaishankar,” she said in the interview.
Also read: PM Modi meets Canada FM Anita Anand, says visit to impart new momentum to bilateral ties
Anand also said that trade discussions would follow once the two countries agreed on a road map to strengthen ties. A joint statement was released on Monday by Anand and Jaishankar announcing that an agreement has been reached.
The statement outlined plans to begin ministerial-level discussions on bilateral trade and investment “at an early date” and to resume the Canada-India CEO Forum alongside a senior-level trade mission in early 2026.
Canada-China relations
Under Trudeau, Canada joined the Biden administration in imposing tariffs on Chinese electric vehicles, steel, and aluminium, a policy that Carney has also continued. Now, Carney’s negotiators are working to secure a deal with the US for relief from Trump’s steel and aluminium tariffs, arguing that strengthening the North American supply chain in these industries is crucial to countering China.
China has hit Canada with heavy tariffs on canola, pork, and seafood, though it recently extended the deadline for its latest probe into Canadian canola. Carney has faced pressure from Western Canada to drop the EV levies in exchange for tariff-free food exports.
In the interview, Anand stressed that, despite their issues, Canada and China can collaborate on climate change and other areas of trade, stating that there are many Canadian businesses engaged in the market.
(With inputs from Bloomberg)