Leaders of Canada and Mexico vow closer economic ties in the face of
Trump trade uncertainty
[September 19, 2025] By
MEGAN JANETSKY and ROB GILLIES
MEXICO CITY (AP) — Canadian Prime Minister Mark Carney and President
Claudia Sheinbaum promised Thursday to strengthen trade relations in the
face of U.S. tariff threats and pushed to keep the most important free
trade agreement in the Western Hemisphere alive in the lead-up to
negotiations next year.
Their meeting came during Carney's first visit to Mexico as Canada's
leader and at a moment of economic tension for the region. The two
leaders shook hands and strode side-by-side into the presidential palace
in Mexico City earlier in the day. Despite not being present, U.S.
President Donald Trump and wider economic uncertainty were front and
center in the visit.
“North America is the economic envy of the world, is the most
competitive economic region of the world, and part of the reason for
that is the cooperation between Canada and Mexico,” Carney said in a
press conference following the meeting. “We complement the United
States. We make them stronger. We are all stronger together.”
Canada and Mexico strengthen trade at a time of uncertainty
Key to Carney and Sheinbaum's meeting was the United
States-Mexico-Canada trade pact, or USMCA, which is up for review in
2026.
Decades of free trade among the three nations has inextricably
intertwined their economies: More than 75% of Canada’s exports and more
than 80% of Mexico’s go to the U.S.
Trump’s ongoing and constantly evolving trade threats have put the
countries’ political and business leaders on edge, as many scramble for
more stable trade alternatives.
“Trump looms over this visit. Mexico and Canada now share a common
threat from the U.S,” said Nelson Wiseman, professor emeritus at the
University of Toronto.
On Thursday, Carney said he expects “much greater amounts of trade, much
greater amounts of investment” between the Mexico and Canada. Sheinbaum
said the two countries had agreed to a plan that what would “bring a new
era of further strengthening economic ties” between the two nations.
Sheinbaum has said they want to increase bilateral trade in different
sectors through the free-trade agreement and do so through maritime
routes — which would avoid those goods having to pass through the United
States.
Seeking improved relations
Carney was also looking to improve relations with Mexico during his
two-day visit after some of Canada’s provincial premiers talked last
year about cutting Mexico out of any new free trade deal with the U.S.
Trump lumped Canada in with Mexico on fentanyl smuggling and promised
sweeping tariffs on both countries. Ontario Premier Doug Ford said then
that Trump comparing Canada to the Mexico was “the most insulting thing
I’ve ever heard from our friends and closet allies, the United States of
America.”
Canadian Sen. Peter Boehm, who represented the Canadian government when
Sheinbaum was sworn in as Mexico’s president last year, said the
comments by the premiers, which he deemed out of their lane, upset the
Mexicans.
[to top of second column] |
Diana Fox Carney, right, and Jesus Maria Tarriba, left, look on as
Canada's Prime Minister Mark Carney presents Mexican President
Claudia Sheinbaum with a World Cup sweater before a meeting at the
National Palace in Mexico City, Thursday, Sept. 18, 2025. (Adrian
Wyld/The Canadian Press via AP)
 “The Mexicans are particularly
sensitive on these matters and there was concern about that, no
doubt,” Boehm, who has been pushing closer relations between the two
governments, said.
He said relations recently improved, noting Mexico appreciated
Carney inviting Sheinbaum to the G7 summit in Alberta in June.
On Thursday, the two leaders promised new rounds of bilateral
meetings in the coming months, and greater collaboration on security
issues, agriculture, energy, finance, health, the environment and
more.
“At this hinge moment. Canada is deepening our relationships with
our long-standing partners,” Carney said. “Mexico is central to
those missions.”
Mexico is Canada’s third-largest trading partner after the U.S. and
China. Canada was Mexico’s fifth-largest trading partner in 2024.
But trade with the U.S. remains paramount for both countries and
preserving the free trade pact will be critical.
Trump looms over visit
Mexico and Canada have had different approaches to manage the
negotiations with Trump’s administration but both countries want to
increase bilateral commerce within the North American treaty.
Sheinbaum said the countries are already setting up teams and
reviewing the agreement with the hopes of keeping trilateral free
trade in place.
“Their priority is to strategize on how to deal with Trump and the
coming renegotiation of the USMCA. Carney and Sheinbaum now
recognize that tag-teaming Trump may be more effective than
competing for separate deals with Trump, although they are still
angling for them," said Wiseman, the professor.
That trade agreement has largely shielded the vast majority of
Mexican and Canadian goods from the punishing duties. Canadian and
Mexican companies can claim preferential treatment under the USMCA.
But Trump has some sector-specific tariffs, known as 232 tariffs,
that are having an impact. There is a 50% tariff on steel and
aluminum imports. Sheinbaum noted that the lack of tariffs on many
goods was a sign of the economic ties between the countries, but
noted she hoped to offset especially steel tariffs.
Despite that, Carney and Sheinbaum highlighted the importance of the
U.S. and the importance of unity between the three countries. They
dodged questions about provocations by Trump and any tensions with
the American leader, threading the word “optimism” throughout the
press conference.
“USMCA is a testament to if Mexico, Canada and the United States
work together, we can create prosperity, face global challenges
successfully and position ourselves as the most dynamic region in
the world,” Sheinbaum said.
___
Gillies reported from Toronto. María Verza contributed to this
report from Mexico City.
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