Under U.S. Tariff Pressure, Carney Looks to India for Economic Reset

Ottawa/New Delhi( Rajeev / Gurpreet) : Faing growing economic strain from U.S. trade tariffs, Canadian Prime Minister Mark Carney is preparing a major diplomatic and trade outreach to India, signaling a strategic shift in Ottawa’s foreign economic policy. After years of frozen relations, Canada and India are now moving to reopen talks on a long-stalled free trade agreement, driven by shared concern over Washington’s protectionist measures. With Canadian exporters increasingly vulnerable to U.S. market decisions, India has emerged as a key alternative partner in Ottawa’s plan to diversify trade routes.

Senior government sources say the proposed visit aims to repair political ties, rebuild trust, and unlock new markets in sectors such as energy, agri-food, clean technology, and manufacturing. India’s fast-growing economy is seen as a critical counterbalance to Canada’s heavy dependence on the U.S. market.
Analysts describe the move as a pragmatic economic pivot, arguing that Ottawa has little choice but to seek new trade allies as American tariffs continue to reshape global supply chains. New Delhi, meanwhile, is also looking to expand export access as it faces its own trade pressures from Washington.

If finalized, Carney’s India trip would represent the strongest signal yet of a diplomatic thaw between the two countries and could revive a trade deal stalled for years due to political tensions.

By Rajeev Sharma

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