Trump tariffs: What India can learn from Canada’s failed trade talks with US
Canada has suspended trade negotiations with the US after failing to reach an agreement on tariff relief, leading to retaliatory measures from both sides. Analysts suggest India should study this breakdown to better navigate unpredictable US trade policies and protect its own manufacturing interests.
Why it matters
The collapse of long-standing US-Canada trade relations highlights the growing volatility in global trade agreements and the risks nations face when negotiating with protectionist US administrations.
Canada’s firm stance to call off trade negotiations with the US and the Donald Trump administration’s unpredictable policies hold key lessons for India, according to Ajay Srivastava, founder of Global Trade Research Initiative (GTRI).Canada called off its trade negotiations with the US on August 21, 2026, and withdrew its negotiating team after realising that Washington was offering only limited tariff relief in exchange for concessions that could undermine Canadian manufacturing and constrain the country’s sovereignty.The US described the breakdown of three days of intensive trade negotiations with Canada as a “missed opportunity” after Ottawa suspended the talks and instructed its negotiating team to return home, while Washington imposed 50%t tariffs on Canadian goods.US Trade Representative Jamieson Greer said Canada had refused to conclude an agreement even though, according to him, the US had offered to provide Canada with the “best treatment of any major exporter” accessing the American market.
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