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.