In a significant diplomatic move, Canadian Prime Minister Mark Carney made his first official visit to Mexico, aiming to reset relations between the two countries amidst ongoing trade tensions with the United States. This trip is especially important as Canada continues to fight the US’s 35% tariff rate on certain goods. By comparison, the weighted average tariff is just 5.6%, largely because many products are zeroed out under the United States-Mexico-Canada Agreement (USMCA).
At a bilateral press conference in Mexico City, Carney and Mexican president Claudia Sheinbaum traded diplomatic niceties. They exchanged gifts, which gave a much cozier impression to their bilateral relations. The meeting underscored their mutual interest in enhancing cooperation while navigating the complexities of their shared relationship with the US.
“Canada and Mexico want to show unity, without appearing to gang up on the US,” stated Sebastián Vallejo Vera, an analyst on North American trade relations. Both countries seek to shore up their economic competitiveness. Simultaneously, they should steer through the difficult realities of dealing with a volatile and capricious trade partner.
Last year, two-way trade with Canada and Mexico topped C$56 billion ($40.5 billion £30 billion). This figure highlights how robust their economic ties are. From a trilateral perspective, the USMCA has mostly defined both leaders’ countries’ economies since entering into force. They noted that the deal has been key in making the North American market one of the most competitive in the world.
Challenges persist. Perhaps the boldest claim Carney made was that Canada’s exports to the US fell much more steeply in 2025. On the other hand, Mexico’s exports flourished, raising concern about the lopsided impact of US trade policy. In his parliamentary address on the announcement, the Canadian Prime Minister pointed to his domestic critics who are demanding his government deliver faster and better tariff relief.
“We compliment the United States, we make them stronger, and we are all stronger together,” Carney asserted during the press conference, emphasizing the need for collaborative efforts to address shared challenges.
Tensions have escalated with President Trump imposing a 25% “fentanyl tariff” on Mexico, claiming it is necessary for border security. Meanwhile, Canada is grappling with sector-specific US tariffs: steel and aluminum are taxed at 50%, vehicles at 25%, and oil and gas at 10%. These tariffs are creating serious barriers for Canadian exporters and raising costs across the board within this complicated trade landscape.
During their debates, Carney and Sheinbaum cut through the noise to discuss pressing matters like border security and transnational organized crime. The two leaders understood that collaboration in these sectors is vital in providing stability and security between both countries.
Today, we are cementing that partnership—one that I know will last for the next 30 years,” Carney proclaimed with confidence. This agreement will create access to new markets and ultimately contribute to a solution for some of today’s trade woes.
Sheinbaum echoed this sentiment, emphasizing that “Mexico must be respected, especially by its trading partners.” Her remarks show Mexico’s wish for equal treatment as the continued US-Mexico tariff spats and USMCA negotiations continue to swirl.
The USMCA is scheduled for a five-year review, starting in 2026. At the same time, Canada and Mexico have begun their own pre-negotiation talks to find new ways to deepen and expand their trading relationship. The impending review presents an opportunity for both countries to advocate for significant reforms. Such changes would go a long way toward mitigating the negative economic effects of US tariffs and improving their economic relationship.