Canada and Mexico Team Up as U.S. Tariff Threats Loom

Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum vowed to strengthen their countries’ partnership during Carney’s visit to Mexico City on Thursday, the first by a Canadian leader in eight years.

The trip comes as both nations face potential U.S. tariffs and prepare for a key trade agreement review in 2026. With U.S. President Donald Trump threatening steep tariffs on Canadian and Mexican imports, the two leaders are working to solidify their alliance.

Tensions had flared last year when Canada briefly considered a separate trade deal with the U.S., straining ties with Mexico. Now, both countries are focused on presenting a united front as they begin public consultations for the 2026 review of the United States-Mexico-Canada Agreement (USMCA).

• Canada, Mexico unite ahead of USMCA review amid Trump tariff threats
• Carney and Sheinbaum vow stronger ties as U.S. tariffs loom
• Canada-Mexico partnership deepens to counter U.S. trade pressure

At a joint press conference, Carney sounded hopeful about the future. "I have full confidence, and so does the president, that we can find the adjustments needed to reinforce competition and competitiveness in our region," he said. He predicted a major increase in trade and investment over the next few decades, citing shared values and ambitions. “Our economies are closer than ever, and our goals are bigger,” he added.

Sheinbaum shared his optimism, stressing the importance of respectful collaboration. "I was optimistic the countries would continue to work together with respect," she said. The leaders also explored expanding cooperation beyond trade, discussing shared efforts to tackle cross-border crime and improve border security—topics that could broaden the USMCA’s focus to include defense.

A Canadian official called the relationship “strong” but said it could grow even closer. “This visit is a chance to reconnect at the highest level,” they noted. Brian Clow, a former aide to Justin Trudeau, emphasized the need for unity: It's not in either country's interest to be fighting each other when they have one single common goal, which is to hold off Donald Trump and his trade threats."

Trade between Canada and Mexico hit C$55.4 billion ($40.2 billion) in 2024, small compared to the C$924.4 billion in Canada-U.S. trade. As the U.S.’s top two trading partners, Canada and Mexico know that any friction could hurt the entire region. Carney dismissed any talk of cutting Mexico out for a U.S.-only deal. “We’re moving forward together,” he said firmly. The leaders also discussed new joint projects on clean energy and supply chains to strengthen North America’s economy.

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As the USMCA review approaches, this renewed partnership could help Canada and Mexico stand strong against U.S. pressures, potentially reshaping trade and cooperation across the continent.