Not a fan of this move, TBH. This is political posturing.
Pannun, who hold dual US and Canadian citizenship, is a New York-based Khalistan activist accused by India of terrorism.
Given the sustained campaign against terrorists the US has undergone over the past two decades, and how the very public proclamations of "you are a terrorist" or "you lot are a terrorist organization" that the US does consistently, it strikes me as a poor way to treat an ally in that part of the world to not honor their designation of a terrorist.
Yes, I understand Trudeaux's complaint about what went down on Canadian soil.