Canada Seeks Mexico Rapprochement as Trump Escalates Tariff Fight

Prime Minister Mark Carney is trying to rebuild Canada’s relationship with Mexico before a scheduled review of the U.S.–Mexico–Canada Agreement, after ties cooled when former leader Justin Trudeau suggested cutting a bilateral trade deal with Washington. Carney recently phoned President Claudia Sheinbaum to smooth relations and has invited her to a Group of Seven summit in Canada. The fallout began late last year, when Trudeau’s overtures to the Trump administration and a surprise visit to Mar-a-Lago prompted Sheinbaum to suspend high-level contacts. The rift left Mexico feeling betrayed after it had defended keeping the 2020 USMCA trilateral, which replaced the original NAFTA. Canada’s urgency has grown since U.S. President Donald Trump last week raised tariffs on Canadian exports to 35% while granting Mexico a 90-day reprieve that holds its rate at 25%. Carney’s government sent Foreign Minister Anita Anand and Finance Minister Chrystia Freeland to Mexico this week, underscoring Ottawa’s aim to present a united front against further U.S. trade pressure and to protect the regional pact. Trade analysts warn that if Canada and Mexico fail to co-ordinate, companies across North America—from automakers to medical suppliers—could face higher costs. If the three governments cannot agree to renew the USMCA during next year’s review, the treaty will lapse in 2036, exposing both smaller partners to unilateral U.S. terms.