Canada Mexico to Coordinate Trade Strategy Amid Trump Tariff Pressures

Canadian Prime Minister Mark Carney is set to visit Mexico in September to meet with President Claudia Sheinbaum, according to a senior official familiar with the arrangement [1]. The high-level meeting comes amid growing concerns from both nations over the impact of U.S. President Donald Trump’s trade policies, particularly the high tariffs on steel, aluminum, and automobiles [1]. These policies have created a challenging economic environment for Canadian and Mexican exporters, with tariffs as high as 50% on steel and aluminum and 25% on auto imports [1].

The meeting follows a series of diplomatic and economic discussions earlier this month, during which Carney’s foreign and finance ministers met with Sheinbaum and a group of business leaders to explore ways to diversify and strengthen bilateral trade ties [1]. The two leaders have previously engaged in high-level exchanges, including when Sheinbaum visited Canada during the G7 summit in Alberta in June [1].

Mexico remains Canada’s third-largest trading partner, following the U.S. and China, while Canada is Mexico’s fifth-largest trade partner in 2024 [1]. The economic interdependence between the two countries is evident, making the coordination of trade strategies a top priority as they face increasing pressure from U.S. trade policies. The 2020 United States-Mexico-Canada Agreement (USMCA) offers some tariff exemptions for goods that meet its terms, but it has not been sufficient to fully offset the impact of Trump’s sector-specific tariffs, known as 232 tariffs [1].

Both Canada and Mexico are now considering how to strengthen or renegotiate the USMCA to better withstand potential U.S. policy changes. The agreement, which replaced the North American Free Trade Agreement (NAFTA), has already faced challenges due to Trump’s unilateral actions. The upcoming September meeting represents a key opportunity for the two leaders to present a unified front and explore joint measures to mitigate the impact of Trump’s trade agenda [1].

Trump has previously indicated that new tariffs on Mexico and Canada could take effect as early as March 4, 2025, and he has suggested doubling existing tariffs on some goods [1]. Given this potential timeline, the strategic discussions between Canada and Mexico must be forward-looking and prepared for rapid shifts in U.S. trade policy. The two nations must also balance the need to maintain their economic stability with preserving their critical trade relationship with the U.S.

While the broader implications of these tariffs and trade tensions remain uncertain, the coordinated approach between Canada and Mexico appears to be the most viable defense against the unpredictable nature of U.S. trade policy under the Trump administration [1].

Sources:

[1] [Fortune](https://fortune.com/2025/08/18/canada-mexico-carney-sheinbaum-to-meet-september-tariffs-trade/)