Good morning. After U.S. President Donald Trump made his trademark early exit from the G7 summit on Monday, the cast of characters filled out its ranks with some new arrivals, including Indian Prime Minister Narendra Modi.
If you squint a bit, you can see the symbolism here — Trump literally turning his back on allies, forcing Canada to shore up economic ties with non-U.S. countries, even those that represent foreign interference threats. More on that below, plus other G7 news. But first, some non-G7 headlines:
In other news
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On our radar
- Today: Tiff Macklem, Governor of the Bank of Canada, will speak before the St. John’s Board of Trade.
- Tomorrow: U.S. markets will be closed for Juneteenth.
- Notable earnings include Aurora Cannabis Inc.
Canadian Prime Minister Mark Carney welcomes Indian Prime Minister Narendra Modi to the G7 Summit in Kananaskis, Alta., on Tuesday, June 17, 2025. THE CANADIAN PRESS/Darryl DyckDARRYL DYCK/The Canadian Press
In focus
The blurred line between friend and foe
For the second time, Trump has bailed early from a G7 summit on Canadian soil. He stormed out of the 2018 meeting in Charlevoix, Que., over a disagreement over tariffs, calling former prime minister Justin Trudeau “dishonest and weak” on Twitter on his way out.
This time, the public drama was kept to a minimum as Trump left a day early to deal with the escalating conflict between Israel and Iran. But there would be no breakthrough on trade with Canada, just a vague commitment to continue negotiating with the aim of striking an economic and security deal within 30 days.
Enter Modi. During his first trip to Canada in a decade, the Indian PM and Canadian Prime Minister Carney agreed to designate new high commissioners and restore regular diplomatic services to citizens in both countries.
Canada and India had a serious falling out in 2023 over the killing of Canadian Hardeep Singh Nijjar, which Trudeau accused the Indian government of being involved with.
So, some were outraged when Carney invited his Indian counterpart to the G7. In Calgary, Sikh organizations and human-rights activists have been leading protests.
Others say it’s time for Canada to reset its relations with India, which is the world’s fifth largest economy and is, in Carney’s words, “at the very centre of global supply chains.”
Earlier this month, former prime minister Stephen Harper said Canada needs “enlightened partners” such as India to thrive in a world where the rules-based trade order is being replaced by “something much more akin to survival of the fittest and the triumph of the strongest.”
For starters, Canada should resume the trade negotiations with India that were put on hold two years ago, Jeff Mahon of consulting firm StrategyCorp, and a former deputy director at Global Affairs Canada’s China Division, writes in The Globe.
“For too long, foreign policy was treated as fodder for domestic politics,” he said. Canada “politicized foreign policy and sacrificed the national interest for short-term domestic political points.”
Same goes for Canada’s relationship with China.
Though China has no seat at the G7 table, it too has a frayed trade relationship with Canada that ought to be seen through a different lens, Mahon said.
Everyone seems to agree that Canada needs to forge stronger overseas ties to reorient the national economy. But the real growth isn’t going to originate in Europe, Mahon said. Instead, Canada’s fortunes lie with China and India.
“Nuanced vision is needed because the world is complicated.”
Just how complicated it is was reinforced by a new warning from Canada’s spy agency. In its annual report to Parliament, the Canadian Security Intelligence Service identified India as one of the main perpetrators of foreign interference, The Globe’s Ottawa Bureau Chief Robert Fife writes.
“Canada must remain vigilant about continued foreign interference conducted by the government of India, not only within ethnic, religious and cultural communities, but also in Canada’s political system,” CSIS said.
More G7 reading
- Short deadline for Canada-U.S. talks helps to ‘concentrate the mind,’ Carney says
- G7 agrees on narrow set of issues as trade tensions overshadow summit
- Carney announced $4.3-billion in new support for Ukraine and more sanctions targeting the “shadow fleet” of vessels that Russia is using to skirt international trade restrictions
- British Prime Minister Keir Starmer finalized a tariff deal with the U.S.
- Andrew Coyne: The G7 is dead – time to move on to the G6
- Laurence B. Mussio: At the G7, Canada’s globalist ambitions put our domestic problems in stark contrast
Charted
Debt Becomes Us
Canadian households are among the most indebted in the developed world. At more than 100 per cent of GDP, household debt in Canada has dramatically outpaced countries like Britain and the U.S. over the past 15 years. Why? Like so much else in this country’s economy, the problem can be linked to Canada’s housing boom. “The numbers clearly point to housing unaffordability as a major driver of household debt in Canada,” says Hanif Bayat, CEO of personal finance site WOWA.ca, writing for The Globe.
Bookmarked
On our reading list
Watch: A new Netflix documentary revisits Rob Ford’s chaotic reign as mayor of Toronto.
Stretch: Why men aren’t getting a warm welcome at the Pilates studio.
Morning update
Global markets traded cautiously as escalating Middle East hostilities and uncertainty ahead of the U.S. Federal Reserve’s monetary policy decision prompted investors to hold back on fresh bets. Wall Street futures were mixed, while TSX futures edged higher.
Overseas, the pan-European STOXX 600 was down 0.4 per cent in morning trading. Britain’s FTSE 100 slipped 0.1 per cent, Germany’s DAX declined 0.37 per cent and France’s CAC 40 gave back 0.26 per cent.
In Asia, Japan’s Nikkei closed 0.9 per cent higher, while Hong Kong’s Hang Seng fell 1.12 per cent.
The Canadian dollar traded at 73.18 U.S. cents.