Trade, defence, and diplomacy: Canada’s G7 takeaways

The 2025 G7 Summit, hosted for the first time in Alberta, offered Canada an important moment to assert its place in an increasingly fractured global landscape and to advance an ambitious agenda focused on trade renewal, defence alignment, and energy security.

While much of the summit’s focus was economic, geopolitical tensions overshadowed the meeting. The unfolding crisis between Iran and Israel dominated private discussions, and U.S. President Trump’s abrupt early departure in part reinforced his long-standing skepticism toward multilateral forums and raised concerns about the potential for escalation in the Middle East.

Despite the uncertainty, early indications suggest Canada made progress on several fronts, even as the longer-term outcomes remain to be seen.

U.S. trade talks

At the heart of the summit for Canada was a renewed bid to recalibrate our most consequential bilateral relationship. Following a longer than anticipated meeting, Prime Minister Mark Carney and President Donald Trump announced a 30-day timeline to forge a new economic and security compact, with tariff relief and defence cooperation at the centre.

Going into the meeting, President Trump expressed his optimism, saying, “I think our primary focus will be trade, and trade with Canada, and I’m sure we can work something out.” Elaborating further, he explained, “I’m a tariff person. I’ve always been a tariff (person). It’s simple, it’s easy, it’s precise and it just goes very quickly, and I think Mark has a more complex idea, but also very good.”

Canadian senior officials telegraphed cautious optimism. “We think we’ve made progress and will continue to do that important work,” said Intergovernmental Affairs Minister Dominic LeBlanc. For her part, Ambassador Kirsten Hillman confirmed that removing tariffs remains a primary goal. President Trump echoed this, stating that a deal is achievable and the U.S. focus “is trade with Canada.”

While the process is still far from set, the intent signals political will and movement toward stabilizing and modernizing the agreement and strained relationship between Canada and the U.S. Despite the President Trump early departure, the engagement is being viewed positively, and a far cry from the last time Canada hosted the G7.

Defence and strategic partnerships

Another key deliverable for Canada was reinforcing its new defence commitments. Prime Minister Carney’s pledge to meet NATO’s 2 percent defence spending target drew praise from Secretary General Mark Rutte and viewed as a tangible step toward Canada’s deeper alliance integration.

Canada also expanded its defence posture beyond NATO. In Brussels, Carney is expected to sign a procurement agreement under the ReArm Europe initiative, strengthening Canada’s defence industrial engagement with EU partners. European Council President António Costa described Canada as “a key partner in our transatlantic alliance” and signalled enthusiasm for deeper bilateral security cooperation.

New bilateral agreements with Japan further extended Canada’s strategic reach into the Indo-Pacific. A security of information agreement and a defence equipment transfer accord were finalized between the two countries, enabling intelligence sharing and cross-border collaboration on military technology. These steps position Canada as a more assertive player in the Indo-Pacific security landscape and reflect a broadening of its traditional alliance network.

In a separate meeting with Indian Prime Minister Narendra Modi, Carney reaffirmed the importance of India’s role in global energy security and emerging technologies like artificial intelligence. A quietly significant development at the summit was the agreement between Prime Minister Mark Carney and Indian Prime Minister Narendra Modi to name new high commissioners, marking a formal reset in diplomatic relations. This announcement follows a period of tension between the two countries and is widely seen as a first step toward restoring normal diplomatic engagement.

Carney also announced new sanctions against Russia, reiterating Canada’s commitment to Ukraine and to the international rules-based order. Though more subdued in the public discourse, the announcement was a meaningful signal to allies of Canada's continued alignment with G7 priorities.

Energy and resources

The summit also advanced Canada’s global trade diplomacy in sectors that will define the next economic era. High-level discussions with France, Italy, and Japan helped propel new partnerships around energy transition, innovation, and critical minerals.

The G7 Critical Minerals Action Plan, which Canada helped shape, will focus on building standards-based markets, unlocking capital, and accelerating innovation. Canada’s involvement, alongside its domestic resource capacity, places it in a strong position to influence both the pace and principles of this work.

Joint initiatives such as the Canada–Italy Critical Minerals Partnership and renewed attention to LNG and nuclear projects with Japan underscore the government’s intent to build resilient and sustainable energy supply chains with trusted partners.

Looking forward

Canada arrived at this G7 seeking to advance a practical, forward-looking agenda – and largely succeeded. It renewed momentum on Canada-U.S. trade, affirmed its defence commitments, and carved out influence in the critical minerals conversation. Importantly, Prime Minister Carney maintained message discipline, aligning summit outcomes with domestic priorities and avoiding distractions that have sidetracked past international gatherings. While not every file saw closure, the tone was steady, the goals clear, and the reception, broadly positive. The challenge will be to move quickly from summit diplomacy to policy delivery.

Organisations should monitor how Canada’s evolving relationships with the United States, European Union, Japan, and India translate into domestic policy initiatives and market access strategies. In his final remarks to media following the summit, Prime Minister Carney’s message on this was pointed: Canada’s place in the world will be shaped by “the strength of our values and the values of our strength.”

Contact our team of Public Affairs experts to build a strong strategy for your organization and prepare for what comes next.