Canada and Mexico Strengthen Ties Amid Rising US Tariff Pressures
Mexico City – Canada and Mexico have pledged to deepen cooperation on trade and security, seeking unity as both countries face mounting economic pressure from the United States.
Following a high-level meeting in Mexico City, Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum underscored their commitment to work together while maintaining a balanced partnership with Washington.
“We complement the United States, we make them stronger, and together we are all stronger,” Carney told reporters.
Tariffs Create Strain on Both Economies
Both Canada and Mexico have been hit hard by recent US tariffs. Washington has imposed a 50% tariff on Canadian steel and 25% on certain Mexican pharmaceuticals, along with a 25% “fentanyl tariff” targeting Mexico over border security concerns.
Carney’s visit marks his first official trip to Mexico as prime minister, aimed at repairing relations after tensions last year when Canada was accused of seeking a side deal with the US during trade talks.
At the time, Sheinbaum had criticized Canada, saying “Mexico must be respected, especially by its trading partners.”
This week, however, the mood was far warmer. The leaders exchanged gifts and emphasized a renewed spirit of cooperation.
Expanding Trade and Security Cooperation
The two leaders announced plans to expand their partnership over the next three decades, with trade between Canada and Mexico already valued at C$56 billion ($40.5bn; £30bn) in 2024.
Security was also on the agenda, with discussions on border management and transnational organized crime—issues frequently raised by Washington as reasons for imposing tariffs.
Observers say the show of unity reflects a careful balancing act.
“Canada and Mexico want to demonstrate partnership without appearing to gang up on the US,” said Sebastián Vallejo Vera, a political scientist at Western University.
Shared Challenge: A Protectionist US
Both leaders face the same hurdle—a protectionist US president who has reshaped global trade by imposing tariffs on key industries.
The United States-Mexico-Canada Agreement (USMCA), first signed in 1994, has been the backbone of North American trade. But with the agreement up for review in 2026, uncertainty is already affecting business confidence.
Carney has faced domestic criticism for not securing tariff relief, though last month he dropped Canadian retaliatory tariffs to restart talks with Washington.
Tariffs: Sector-by-Sector Impact
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Canada: Faces a 35% overall tariff rate, though most goods remain exempt under USMCA. Key sectors like steel (50%), vehicles (25%), and oil and gas (10%) have been hit the hardest.
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Mexico: Recently avoided a planned 30% blanket tariff, though Washington maintained sector-specific tariffs and the 25% fentanyl tariff.
Experts say Canada has more to gain from a stronger Mexico partnership, as its exports to the US have been declining in 2025, while Mexican exports remain more resilient.
A Reset in Relations
For years, Canada was perceived in Mexico as prioritizing its relationship with the US while sidelining Mexico. But shifting geopolitical and economic realities are forcing a reset.
“These are unprecedented times,” Prof. Vera noted. “Canada and Mexico are now redefining their relationship in ways that were unimaginable just a few years ago.”
The renewed partnership marks a significant step toward a more united North American front—one that could prove crucial as the USMCA review and new tariff battles loom on the horizon.