Canada and Mexico announce new partnership amid Trump trade war

Canada and Mexico have agreed to deepen ties, vowing nearer cooperation on commerce and safety, as each international locations grapple with rising financial stress from the US.Following a bilateral assembly in Mexico Metropolis, Canada’s Prime Minister Mark Carney and Mexican President Claudia Sheinbaum additionally expressed their dedication to a shared partnership with the US.”We praise the US, we make them stronger, and we’re all stronger collectively,” Carney informed reporters. Each Canada and Mexico have been hit by US tariffs – 50% on Canadian metal, and 25% on some Mexican prescribed drugs. President Trump has additionally levied a 25% “fentanyl tariff” on Mexico, citing border safety.That is Carney’s first official go to to Mexico as prime minister, and it marks an effort to reset relations after tensions flared final 12 months when Canadian officers have been accused of looking for a separate commerce cope with the US throughout tariff talks.On the time, Sheinbaum’s response was that “Mexico should be revered, particularly by its buying and selling companions”, and that Canada “may solely want they’d the cultural riches that Mexico has”.The tone between Carney and Sheinbaum on Thursday appeared a lot hotter, with the 2 exchanging items and later pleasantries at a joint information convention. “Our settlement right this moment will increase and deepen the partnership, in order that the subsequent 30 years maintain even better promise than the final 30 years have delivered,” Carney stated.Canadian officers informed reporters earlier that Canada additionally goals to spice up commerce with Mexico. Commerce between the 2 was valued at C$56bn ($40.5bn; £30bn) in 2024.Carney and Sheinbaum additionally mentioned border safety and “transnational organised crime” – a difficulty Trump has cited to justify tariffs on each international locations.Observers say the renewed co-ordination is predicted, as the 2 “do not need to be pitted towards each other when negotiations begin”.”It is a delicate dance,” stated Sebastián Vallejo Vera, a political scientist at Western College. “Canada and Mexico need to present unity, with out showing to gang up on the US.”The 2 leaders discover themselves going through the identical problem: a protectionist US president who has redefined international and North American commerce by imposing widespread tariffs on most international locations.These levies have been particularly disruptive for Canada and Mexico, whose economies have been largely formed by the United States-Canada-Mexico (USMCA) free commerce settlement – a model of which has been in place since 1994.The USMCA is up for evaluation in 2026. Early levels of which can be already underway, with Washington now soliciting suggestions from American companies on the modifications they’d prefer to see. Canada and Mexico have each supported the settlement, arguing it has helped enhance the competitiveness of the North American market.To this point, Sheinbaum has largely adopted a peaceful, non-confrontational strategy with Washington. Carney, whereas sustaining dialogue with Trump, has confronted home criticism for failing to win tariff reduction. Final month, he dropped retaliatory tariffs on US items to revive talks.Canada faces a 35% US tariff price, although the typical is far decrease – about 5.6%, Carney stated – as most items are exempt below USMCA.However it additionally faces sector-specific US tariffs on metal and aluminium at 50%, automobiles at 25%, and oil and gasoline at 10%.Trump had threatened Mexico with a 30% tariff, however paused the levies on 31 July for 90 days “with the objective of signing a commerce deal”.Mexico stays topic to sector-specific levies and the 25% “fentanyl tariff” that Trump has stated is aimed toward curbing the drug’s circulation into the US, however – like Canada – a lot of its items are exempt below the USMCA. Prof Vera famous that Carney – and Canada by extension – seemingly has extra to realize by forging nearer commerce ties with Mexico than vice-versa. Canadian exports to the US have notably taken successful in 2025, whereas Mexican exports to the US have fared higher.There may be additionally a way in Mexico that Canada has lengthy sidelined Mexico whereas specializing in constructing a stronger relationship with the US, Prof Vera stated.However these are “unprecedented occasions,” he added, forcing Canada and Mexico to redefine their relationship. With inputs from Central America and Cuba correspondent Will Grant.