Canada’s “Buy Canadian” policy, announced by Prime Minister Mark Carney earlier this month, is set to be fully implemented by 2026, according to a senior federal source. The plan is expected to feature in the fall budget and prioritize Canadian suppliers in federal procurement and infrastructure spending.

Policy Timeline

The source, speaking to CBC News, said the first elements of the policy could take effect as early as November 2025, with full application the following spring. They added that new funding is likely to be attached to the November budget, though it is still unclear whether separate legislation will be required.

Federal Commitment

Audrey Champoux, press secretary for the prime minister, confirmed the timeline in broad terms:
“As the prime minister announced earlier this month, new measures will be introduced by November 2025 to make sure that Canadian suppliers and their products are prioritized in all federal spending.”

The policy will cover federal agencies, Crown corporations, infrastructure spending, grants, contributions and loans, making public procurement an anchor for Canadian industry.

Economic Stakes

The federal government purchases about $37 billion worth of goods and services each year. A BMO Economics report estimated that shifting procurement toward domestic suppliers could add $10 billion annually to Canada’s economy, though it warned of higher costs.

Industry groups such as the Canadian Steel Producers Association have long called for a formal “Buy Canadian steel” policy, arguing that domestic producers are capable of replacing most imported supply.

Risks and Challenges

Experts caution the policy could trigger trade disputes. Trade lawyer Mark Warner said Canada risks undermining its credibility in opposing protectionism abroad. “Once you go down this road, it’s very hard to stand up and complain about someone else,” he said.

The renewable energy sector has also raised concerns, noting reliance on foreign components such as turbine blades and solar panel parts. Industry groups are pushing for incentives rather than penalties to encourage local sourcing.

Broader Context

The policy is part of a broader package Carney announced earlier this month to support sectors hit by U.S. and Chinese tariffs. Other measures include a $5-billion fund for trade-dependent businesses, reskilling programs for workers, and liquidity support.

The Buy Canadian initiative will be closely watched as Ottawa prepares its November 4 budget, which will detail funding and scope.

India and Canada have decided to open a new chapter in their bilateral ties with a focus on security and counter-terrorism. The Ministry of External Affairs (MEA) announced Saturday (Sept. 20) that both sides agreed to work closely in combating terrorism and transnational crimes after National Security Advisor Ajit Doval met his Canadian counterpart Nathalie Drouin in New Delhi.

Security Cooperation Focus

The MEA said the NSAs discussed strengthening cooperation in counter-terrorism, tackling transnational organized crime, and boosting intelligence exchanges.

“The two sides agreed to work closely on the way forward and adopt a collaborative approach towards a new chapter in bilateral relations,” the MEA stated.

The talks also covered priority areas for future cooperation and regional and global developments.

Leadership-Level Push

The NSA meeting follows Prime Minister Narendra Modi’s discussion with Canadian Prime Minister Mark Carney at the G7 summit in June. Both leaders had committed to constructive steps to stabilize relations strained by past tensions.
“Both sides acknowledged the clear momentum for rebuilding trust and expanding cooperation at the highest levels of political leadership,” the MEA said.

Background: Relations Hit Rock Bottom

India-Canada relations soured in 2023 after then-PM Justin Trudeau alleged possible Indian involvement in the killing of Khalistani activist Hardeep Singh Nijjar. The fallout led to the expulsion of diplomats on both sides.

Ties began to improve after Liberal Party leader Mark Carney became prime minister in April 2025, paving the way for dialogue and renewed cooperation.

India and Canada Agree to Restart Talks

Officials from India and Canada met on Friday as part of pre-Foreign Office consultations. Both sides agreed to take steps to restart bilateral dialogue across key areas, the Ministry of External Affairs (MEA) said in a statement.

Areas of Cooperation

The renewed talks will cover a wide range of domains, including:

• Trade and investment

• Defence and security

• Critical minerals

• Civil nuclear energy

• Law enforcement

• Space, science, and technology

• Agriculture

The MEA noted that the goal is to reactivate dialogue mechanisms that had stalled in recent years.

Leaders Aim to Stabilize Relations

The decision follows an understanding reached between the prime ministers of both nations to restore stability in ties. Both countries aim to pursue a constructive partnership while addressing shared challenges in trade and security.

Leaders Commit to Closer Ties

Canada and Mexico have agreed to strengthen their partnership on trade and security, seeking unity as both economies face rising pressure from U.S. tariffs.

At a joint press conference in Mexico City, Prime Minister Mark Carney and President Claudia Sheinbaum emphasized that their cooperation would also benefit the broader North American partnership.

Carney said:

“We complement the United States, we make them stronger, and we are all stronger together.”

Reset After Diplomatic Strains

This was Carney’s first official visit to Mexico as prime minister, aimed at resetting ties after tensions in 2024.

At the time, Canadian officials were accused of seeking a separate U.S. trade deal, prompting Sheinbaum to say Mexico “must be respected.” The tone this week was warmer, with the leaders exchanging gifts and affirming unity.

Canadian officials said trade between the two countries reached C$56 billion ($40.5 billion) in 2024.

Focus on Trade, Crime, and Security

Carney and Sheinbaum discussed:

• Expanding bilateral trade under the USMCA framework
• Strengthening border security
• Combating organized crime and trafficking

Observers say both leaders want to avoid being pitted against each other in upcoming negotiations. Political scientist Sebastián Vallejo Vera described it as “a subtle dance” to show unity without appearing to gang up on Washington.

U.S. Tariffs Driving Policy Shifts

Both countries continue to face sector-specific U.S. tariffs:

• Canada: Steel (50%), vehicles (25%), oil & gas (10%)
• Mexico: Pharmaceuticals (25%), fentanyl tariff (25%)

Carney recently dropped Canada’s retaliatory tariffs in an effort to revive talks with Washington. However, Canada’s exports to the U.S. have been harder hit than Mexico’s in 2025.

Trump paused new tariffs on Mexico until October but warned of further measures if no new deal is reached.

Trade Outlook and Strategic Gains

Experts note Canada may gain more from stronger Mexico ties than the reverse, given its weaker export performance this year.

Still, both countries remain committed to the USMCA, which comes up for review in 2026. Early consultations are already underway in Washington.

Professor Vera said these are “unprecedented times” forcing Canada and Mexico to redefine their relationship as they prepare for renewed talks with the U.S.

Prime Minister Mark Carney warned Canada’s “old relationship” with the U.S. would soon be “over.” New data on travel, trade, shopping, and culture shows that prediction is coming true.

Months after Donald Trump’s tariffs and his “51st state” remarks, Canadians are boycotting cross-border travel, reducing imports, and embracing homegrown products and culture.

Travel Boycott in Full Swing

Statistics Canada data shows car travel to the U.S. dropped 34% in August, the eighth straight month of decline.

Air travel also plunged, with Canadians returning from the U.S. down 25.4% year-over-year.

Trade Patterns Shift to Europe and U.K.

Canadian exports to the U.S. fell 2% in 2025, costing about $5 billion. Businesses are quickly turning elsewhere.

• Exports to the United Kingdom surged 63% this year, making Britain Canada’s second-largest export market outside the EU.
• Exports to Europe overall are up 26%.
• Trade with Central and South America is up 13%.

By contrast, exports to Mexico dipped slightly amid CUSMA uncertainty.

Retail and Shopping Changes

The Buy Canadian movement is reshaping retail.

• Canadian-authored books sales rose 25% at Indigo after stores began labeling them.
• U.S. alcohol sales dropped 62% in Canada, with premiers restricting American products.
• Food sales of U.S. imports fell 15–20%, with some categories dropping 50%.

Meanwhile, Loblaw added 100+ Canadian suppliers, showing a stronger shift to domestic goods.

Cultural Shift Toward Canadian Content

Canadians are also consuming less American entertainment.

• CBC Gem streaming hours rose 34% in 2025.
• Homegrown shows like Wild Cards (+200%), Heartland (+78%), Schitt’s Creek (+53%), and Murdoch Mysteries (+44%) saw huge jumps.
• The Juno Awards drew 2.8 million viewers, a 400% surge online.
• Historica’s Canadian Encyclopedia is on pace for 14 million pageviews.

Experts say Canadians are turning inward, showing new pride in domestic content during trade tensions.

Analysts: U.S.–Canada Rift Deepening

Despite Canada lifting tariffs and making goodwill gestures, Trump has offered little in return.

Christopher Sands of Johns Hopkins University said:

“I can’t expect Canadians to change their minds if they aren’t getting anything in return. Trump hasn’t done anything to show he knows he’s gone too far.”

Experts warn relations won’t improve until Washington signals a reset. Until then, Canadians appear ready to keep their wallets — and attention — at home.