The United States has increased duties on many Canadian exports to 35%, up from a 25% fentanyl-related tariff earlier this year, after Ottawa and Washington missed an 1 August deadline for a broader trade deal. Prime Minister Mark Carney said he will speak with President Donald Trump “when it makes sense,” adding that Canada may remove some of its own counter-tariffs to protect domestic firms. While unveiling a C$1.2 billion support package for the softwood-lumber sector, Carney reiterated that no Canadian industry would be sacrificed in negotiations. In response to the latest U.S. moves, Foreign Minister Anita Anand and Finance Minister François-Philippe Champagne travelled to Mexico City for talks with President Claudia Sheinbaum. The two governments agreed to build a work plan covering resilient supply chains, port-to-port trade, critical minerals, energy security and artificial intelligence. Mexico secured a 90-day reprieve from threatened U.S. levies of up to 30%, and Canadian officials said they hope closer cooperation with Mexico will strengthen their joint position ahead of mandatory USMCA reviews next year. Elsewhere, European Commission officials said a framework trade deal with Washington is already being implemented and that a joint statement is “pretty much ready,” although they are waiting for the U.S. side to respond. Brussels warned that failure to finalise the accord could trigger a new escalation of tariffs and create divisions within the bloc, underscoring the divergent strategies among America’s major trading partners as they navigate the Biden administration’s protectionist stance.