Canada and Mexico announce new partnership amid Trump trade war


This is Carney’s first official visit to Mexico as prime minister, and it marks an effort to reset relations after tensions flared last year when Canadian officials were accused of seeking a separate trade deal with the US during tariff talks.

At the time, Sheinbaum’s response was that “Mexico must be respected, especially by its trading partners”, and that Canada “could only wish they had the cultural riches that Mexico has”.

The tone between Carney and Sheinbaum on Thursday appeared much warmer, with the two exchanging gifts and later pleasantries at a joint news conference.

“Our agreement today will expand and deepen the partnership, so that the next 30 years hold even greater promise than the last 30 years have delivered,” Carney said.

Canadian officials told reporters earlier that Canada also aims to boost trade with Mexico. Trade between the two was valued at C$56bn ($40.5bn; £30bn) in 2024.

Carney and Sheinbaum also discussed border security and “transnational organised crime” – an issue Trump has cited to justify tariffs on both countries.

Observers say the renewed co-ordination is expected, as the two “don’t want to be pitted against one another when negotiations start”.

“It’s a subtle dance,” said Sebastián Vallejo Vera, a political scientist at Western University. “Canada and Mexico want to show unity, without appearing to gang up on the US.”

The two leaders find themselves facing the same challenge: a protectionist US president who has redefined global and North American trade by imposing widespread tariffs on most countries.

Those levies have been especially disruptive for Canada and Mexico, whose economies have been largely shaped by the United States-Canada-Mexico (USMCA) free trade agreement – a version of which has been in place since 1994.

The USMCA is up for review in 2026. Early stages of that are already underway, with Washington now soliciting feedback from American businesses on the changes they’d like to see.

Canada and Mexico have both supported the agreement, arguing it has helped boost the competitiveness of the North American market.

So far, Sheinbaum has largely adopted a calm, non-confrontational approach with Washington.

Carney, while maintaining dialogue with Trump, has faced domestic criticism for failing to win tariff relief.

Last month, he dropped retaliatory tariffs on US goods to revive talks.


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