Canadian Prime Minister Mark Carney arrived in Mexico on Thursday for talks with Mexican President Claudia Sheinbaum as both seek common ground in approaching critical trade talks with the US on the United States-Mexico-Canada Agreement (USMCA) free trade pact.
The pact is up for review in 2026, but it has already been shaken up by from US President Donald Trump.
In February, Trump bashed the USMCA deal he set up during his first administration, while on imports from Canada and Mexico, saying both countries were responsible for enabling fentanyl trafficking into the US.
After several , scattershot tariffs remain in place on some goods not covered under the deal. Trump has said he wants renegotiations with better terms for US manufacturers.
Canada, Mexico seek common front
As public consultations starting the USMCA review process kicked off this week, Carney and Sheinbaum indicated they would try and present a common front rather than try and reach bilateral side deals with Trump.
“We will move forwards together,” Carney told a press conference Thursday after being asked if Canada would consider going around Mexico to get a better deal.
Carney said the two leaders were “committed” to the USMCA, crediting it with making North America “the economic envy of the world.”
“Part of the reason for that is the cooperation between Canada and Mexico … We complement the United States. We make them stronger. We are all stronger together,” he added.
What is the effect of tariffs?
The US is by far the largest export market for Canadian and Mexican products, and years of open cross-border trade have heavily intertwined the three economies.
Now, Canadian goods outside the USMCA are subject to a 35% tariff, and similar goods from Mexico are hit with 25% tariffs. This has affected Canada and Mexico’s automotive, steel and aluminum sectors.
Sheinbaum said Mexico and Canada were exploring potential bilateral trade deals to bypass US ports, in a plan that what would “bring a new era of further strengthening economic ties.”
She added maritime routes could enable bilateral trade in different sectors under the free trade agreement.
Carney said he expected “much greater amounts of trade, much greater amounts of investment.”
Edited by: Roshni Majumdar
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