January 22, 2026
Brampton, ON
Arpan Chahal
World leaders speaking at the World Economic Conference delivered a clear and urgent message, global politics are undergoing a fundamental shift. This theme was explored during a recent discussion on RED FM’s talk show, Good Morning Toronto, where analyst Meenakshi Lakhanpal joined host Shameel Jasvir to break down the speeches.
The tone across nations was measured but serious, with leaders focusing less on domestic agendas and more on the rapidly changing balance of power. What emerged was a shared recognition that the geopolitical landscape is no longer stable, and that traditional alliances and assumptions are being tested.
The United States and the turning point
Much of this realignment has been accelerated by the United States under President Donald Trump. His “America First” approach, combined with tariffs and a pullback from the role of global enforcer, marked a clear departure from decades of U.S. led global order.
While Trump’s style often appeared abrupt, Meenakshi noted these actions were not made in isolation. They reflect long-standing strategic thinking within U.S. defence and policy institutions aimed at protecting American interests first. She pointed to Venezuela as an example, where U.S. pressure and intervention were driven in part by concerns that an estimated 80 per cent of the country’s oil exports were flowing to China, strengthening Beijing’s energy and geopolitical influence.
Similarly, renewed U.S. interest in Greenland has been framed through a long-term security lens. With the Arctic becoming increasingly strategic, U.S. policymakers view Greenland as critical to preventing future military or economic expansion by China and Russia in the region. In both cases, the underlying message has remained consistent, the U.S. is acting early to secure its future strategic position.
Middle powers adjust to a changing order
As geopolitics increasingly shape economic decisions, countries like Canada and many European nations are being forced to adapt. Trade, supply chains, and financial systems are now closely tied to political alignment, making neutrality harder to maintain.
Canada’s position is particularly delicate. With roughly 70 to 80 per cent of its trade tied to the United States, diversification will take time. Still, Ottawa has begun expanding engagement with India and China, while increasing defence and strategic spending to levels not seen since the Second World War. These steps reflect a growing understanding that over-reliance on a single partner carries long-term risk.
What this means for Canada’s future
This shift is not tied to one leader or one election cycle. It is structural and likely to endure. Economic tools from tariffs and trade controls to digital payment systems and currency leverage have become instruments of power and reshaping how influence is exercised globally.
India’s rising role, Europe’s internal realignment, and the continued silence around the future of underdeveloped nations all point to a world in transition. For Canada, the challenge is clear, adapt or risk falling behind.
At the same time, the stand taken by Prime Minister Mark Carney has been firm and pragmatic, signalling an understanding of both global realities and Canada’s vulnerabilities. With steady leadership and a centrist, strategic approach, there is growing confidence that policy direction and economic positioning can begin to turn around sooner rather than later.
The global landscape is changing, but Canada is not without options. With focused leadership and timely decisions, the country can reposition itself and take a more assured role in the evolving global order.
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