India, Canada & Mexico's $8 trillion trade math looks for cover amid Trump tariff bullet
India is accelerating trade talks with Canada and Mexico as the three countries seek to diversify markets amid disruptions from US tariff policies. India and Canada will hold a fifth round of negotiations from October 5, with a deal potentially being signed during Prime Minister Narendra Modi’s expected Canada visit in December.
India, Canada, and Mexico are intensifying their trade negotiations as they seek to expand market opportunities and forge new partnerships amid challenges posed by the United States' tariff policies under President Donald Trump. Indian and Canadian negotiators are set to hold a fifth round of talks starting October 5, building on previous discussions that concluded last week, according to sources.
A potential agreement is expected to be finalized in December when Indian Prime Minister Narendra Modi is anticipated to visit Canada, as reported by the Globe and Mail, citing Indian envoy Dinesh Patnaik.
On the Mexico front, New Delhi is finalizing a framework to initiate formal trade negotiations, with officials striving for quicker progress in these talks as all three nations aim to diversify their commercial ties. The Mexico Economy Ministry, which oversees trade negotiations, is conducting ongoing analysis for a potential deal, though no final proposal has been established.
Together, the three economies boast a combined economic output exceeding $8 trillion, facing disruptions from Trump's trade measures. Mexico is particularly focused on reaching an agreement with the US, as they negotiate amendments to their existing pact, while Canada and the US concluded their trade talks last month. The US remains the primary export market for both Canada and Mexico.
India, however, is contending with new tariff threats under a recent law that permits President Trump to impose levies of up to 100% on nations importing Russian oil and gas. India reached an interim trade deal with the US earlier this year and is currently engaged in negotiations regarding the tariff rate. Canadian Prime Minister Mark Carney affirmed Modi's December visit to the country, emphasizing the significance of Canada-India relations and highlighting the progress made in trade discussions.
Canada's trade relationship with India, valued at nearly $8 billion each in 2025-26, has been expanding steadily.
India's outreach to Canada and Mexico is part of a broader strategy to broaden trade ties and secure enhanced access to global markets. Over the past year, New Delhi has signed trade agreements with the UK, Oman, and New Zealand, concluding years of negotiations with the European Union, while ongoing talks with several other economies are ongoing.
Meanwhile, Mexico seeks greater access to India's market for tequila, fruits, and auto components, while India aims to reduce trade barriers on goods such as automobiles, auto parts, and steel. Last year, Mexico's President Claudia Sheinbaum imposed tariffs ranging from 5% to 50% on steel and other products from Asian nations lacking a trade deal with Mexico.
India plans to conclude a limited preferential trade agreement encompassing a select number of goods, with the terms of negotiations expected to be finalized soon, and talks aiming to conclude by December.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
