Canada, Mexico Leaders Meet Amid US Tariff War
Mexico's president will host the leader of Canada for trade talks Thursday as they seek to navigate the tariff war launched by Donald Trump despite the existence of a three-way free-trade agreement.
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Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum to hold discussions in Mexico City
Mexico:
The president of Mexico is set to welcome Canada's leader for trade discussions on Thursday as both nations work to address the tariff conflict initiated by Donald Trump, despite the existing trilateral free-trade agreement.
President Claudia Sheinbaum and Canadian Prime Minister Mark Carney will meet in Mexico City while Trump seeks to renegotiate the USMCA North American trade agreement that has been in effect since 2020. This agreement replaced the NAFTA deal signed during the 1990s.
The US president views the current trilateral arrangement as disadvantageous to his country and has criticized his neighbors to the north and south regarding illegal migration and drug trafficking issues.
While Trump has largely spared Mexico from the threatened sanctions, he has imposed 35 percent duties on certain Canadian products.
Sheinbaum informed reporters on Thursday that Carney's visit aims to "strengthen the Mexico-Canada relationship, which, in addition to the treaty we already have, is to strengthen trade and economic investments in certain sectors."
The two leaders will explore increasing trade through Canadian and Mexican ports instead of using land routes through the United States.
They will also discuss implementing special visa programs for Mexican workers, alongside cooperation in education, renewable energy, and innovation sectors, according to Sheinbaum.
Prior to his trip, Carney stated that the two nations maintain "a strong relationship, built on more than three decades of free trade."
He further noted that "in the face of a shifting global landscape, we are focused on elevating our partnerships in trade, commerce, security, and energy.
"Together, we will build stronger supply chains, create new opportunities for workers, and deliver greater prosperity and certainty for both Canadians and Mexicans."
A scheduled review of the USMCA is set for next year.
US tariffs are significantly impacting Canada's vital auto, steel, and aluminum industries, resulting in job losses.
Canada has responded with tariffs on billions of dollars of US imports, though Carney has since exempted US goods falling under USMCA as a conciliatory gesture to facilitate negotiations.
Sheinbaum has thus far managed to avoid a blanket 30-percent US import tariff, although Mexico's automotive, steel, and aluminum sectors have been subject to higher tariffs, similar to other countries.
The United States continues to be the primary export destination for both Mexico and Canada.
The bilateral trade between Mexico and Canada totaled less than $32 billion last year — more than 20 times smaller than each country's trade volume with the United States.