Canada and Mexico have pledged to strengthen cooperation on trade and security as both countries contend with escalating economic pressure from Washington.
Following a bilateral meeting in Mexico City, Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum emphasized a shared commitment to regional unity, including with the United States.
“We complement the United States, we make them stronger, and we are all stronger together,” Carney told reporters, striking a conciliatory tone.
Resetting Relations After Tensions
The meeting marked Carney’s first official visit to Mexico since becoming prime minister and was widely seen as an effort to reset ties after tensions in 2024. At the time, Canadian officials were accused of seeking a separate trade arrangement with Washington during tariff negotiations, a move that drew sharp rebuke from Sheinbaum, who insisted Mexico “must be respected.”
On Thursday, however, the atmosphere was markedly warmer, with the two leaders exchanging gifts before holding a joint press conference. “Our agreement today will expand and deepen the partnership, so that the next 30 years hold even greater promise than the last,” Carney declared.
Tariffs and Economic Pressure
Both nations remain locked in disputes with President Donald Trump’s administration over tariffs. Canada faces a 50% levy on steel and other sector-specific duties, while Mexico is contending with a 25% tariff on pharmaceuticals and a controversial 25% “fentanyl tariff,” imposed on border security grounds.
While much of their trade remains exempt under the United States-Mexico-Canada Agreement (USMCA), the targeted tariffs have hit key industries. Canada’s exports to the US have taken a notable hit in 2025, while Mexican shipments have proved more resilient.
Building a Stronger Partnership
Canadian officials say they are looking to deepen trade with Mexico, with bilateral trade already valued at C$56 billion ($40.5bn; £30bn) in 2024. Both governments also discussed security, particularly the threat of transnational organized crime, which Trump has repeatedly cited as justification for his trade measures.
Observers say the renewed cooperation reflects a desire by both sides not to be played against one another as the USMCA comes up for review in 2026.
“It’s a subtle dance,” said Sebastián Vallejo Vera, political scientist at Western University. “Canada and Mexico want to show unity without appearing to gang up on the US.”
Looking Ahead
For now, both leaders appear keen to downplay past frictions. Sheinbaum has adopted a calm, pragmatic approach to Washington’s policies, while Carney has sought to ease tensions by dropping retaliatory tariffs last month.
Still, with Trump continuing to redefine North American trade through protectionist measures, analysts warn that Canada and Mexico may have no choice but to lean more on each other.
“These are unprecedented times,” said Prof Vera. “Canada and Mexico are being forced to redefine their relationship in ways we haven’t seen before.”
