Canada is working to reset its trade relationship with Mexico as former US President Donald Trump threatens both nations with punitive tariffs ahead of a planned review of the North American free-trade agreement, according to a Bloomberg report. Prime Minister Mark Carney has dispatched his top diplomat and finance minister to Mexico City in an effort to mend relations strained under the previous administration.
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According to data from the IndexBox platform, Mexico remains Canada’s third-largest trading partner, with bilateral trade exceeding $49 billion in 2023. However, tensions emerged last year when Canadian provincial leaders accused Mexico of insufficiently countering Chinese trade threats, prompting concerns over North American trade unity.
Foreign Minister Anita Anand and Finance Minister Francois-Philippe Champagne held discussions with Mexican President Claudia Sheinbaum and key officials, exploring infrastructure investments in ports and railways to facilitate trade. The meetings included executives from Canadian Pacific Kansas City Ltd. (CP), TC Energy Corp. (TRP), and Caisse de Depot et Placement du Québec.
Trump recently raised tariffs on Canadian goods to 35%, citing non-compliance with trade terms, while granting Mexico a temporary 90-day exemption. Analysts suggest Canada’s outreach reflects a need for continental coordination ahead of next year’s USMCA review, though some caution against overt displays of alliance-building to avoid provoking US protectionism.
