Canada Navigates Complex Diplomatic Relationships with China and India Amid US Trade Tensions

Anand emphasized that despite ongoing issues, Canada and China can work together on climate change initiatives.

Canada is actively working to strengthen diplomatic and economic ties with China and India, while simultaneously navigating complex trade negotiations with a US administration that has intensified its tariff conflict with Beijing.

Canadian Foreign Minister Anita Anand is conducting diplomatic visits to New Delhi, Mumbai, Singapore, and Hangzhou this week to meet with her counterparts and establish foundations for enhanced trade and investment opportunities.

The diplomatic mission faces significant challenges: Canada's disputes with these two Asian powers are substantial, and any attempts to improve relations with China must be carefully managed to avoid provoking retaliation from US President Donald Trump.

However, Anand maintains that Canada's approach remains consistent across all international relationships - prioritizing Canadian workers and businesses first. This represents a clear policy shift under Prime Minister Mark Carney, who has placed economic interests at the forefront, departing from many of Justin Trudeau's foreign policy principles.

"It comes down to being a sovereign nation," Anand stated in a Bloomberg News interview when questioned about Canada's balancing act between China and the US.

On Friday, Trump threatened to impose an additional 100 percent tariff on Chinese products, triggering a stock market decline, though by Sunday the president indicated openness to a potential compromise.

"Maintaining a stable relationship with a major global economic player is critically important in the current geopolitical climate," Anand added. "Canada's approach to China will be guided by one fundamental principle - acting in Canadians' best interests."

Under Trudeau's leadership, Canada aligned with the Biden administration in implementing tariffs against Chinese electric vehicles, steel, and aluminum - a policy that Carney has continued.

Carney's negotiators are working to secure an agreement with the US that would provide relief from Trump's steel and aluminum tariffs, arguing that strengthening North American supply chains in these industries is essential for countering China's influence.

China has responded by imposing substantial tariffs on Canadian canola, pork, and seafood. However, it recently extended the deadline for its latest investigation into Canadian canola imports, allowing additional time for negotiations. Carney faces pressure from western Canada to eliminate EV tariffs if doing so would secure tariff-free food exports.

Canadian steel, aluminum, and automotive manufacturers support the country's tariffs on Chinese products. However, public opinion regarding EV tariffs is shifting - only 44 percent of Canadians now support them, down from 63 percent last year, according to Bloomberg News polling conducted by Nanos Research Group.

Carney has identified potential areas for cooperation with China in the energy sector and is optimistic about increasing liquefied natural gas exports to Asia. The prime minister anticipates meeting with President Xi Jinping, with the upcoming Asia-Pacific Economic Cooperation summit in South Korea providing a potential opportunity.

Anand highlighted that despite existing challenges, Canada and China can collaborate on climate change initiatives and expand trade relationships. "Many Canadian businesses are actively engaged in the Chinese market," she noted.

Regarding India, trade agreement discussions stalled in 2023 after Trudeau alleged Indian government involvement in the murder of a Sikh separatist on Canadian soil. Prime Minister Narendra Modi denied these claims, though legal proceedings continue in both Canada and the US, with some activists reporting ongoing security concerns.

Under Carney's leadership, Canada has moved to normalize diplomatic relations with India, with both countries appointing new ambassadors and establishing protocols for intelligence sharing on cross-border criminal activities. Anand confirmed she addressed transnational repression concerns with External Affairs Minister Subrahmanyam Jaishankar during their meeting last month and plans to raise the issue again.

Even before the diplomatic crisis, progress toward a Canada-India trade agreement was moving slowly. When asked about the potential resumption of these discussions, Anand emphasized the significant diplomatic progress already achieved.

"In 2023, we faced a situation where high commissioners had been recalled and diplomatic relations were virtually at a standstill. Now in October 2025, just two years later, we have high commissioners in place, and I'm traveling to meet with Minister Jaishankar," she stated.

"We're taking a measured, step-by-step approach to rebuilding the diplomatic relationship and developing a work plan that our respective leaders can endorse," she explained. "Trade discussions will follow once that foundation is established."