Summary
- PM Mark Carney to visit Mexico in September.
- Meeting with President Claudia Sheinbaum planned.
- Discussions to focus on boosting trade relations.
- Aim to navigate tense US trade tensions.
- Emphasis on reinforcing supply chains, infrastructure growth.
Since he was re-elected last autumn, U.S. President Donald Trump has threatened and imposed tariffs on both Canada and Mexico.
Questions have been raised concerning Trump's disparate treatment of the two nations when he raised tariffs on Canadian non-CUSMA-compliant goods to 35% earlier this month while temporarily exempting Mexico.
By August 1, Canada made an effort to come to a tariff accord. However, by that deadline, no workable agreement was on the table, according to Dominic LeBlanc, the minister in charge of trade between Canada and the United States.
With the intention of completing a new agreement during that time, Trump granted Mexico a 90-day extension of its current tariff regime.
Carney is expected to travel to Mexico on September 18.
Additionally, Carney's visit coincides with the imminence of a CUSMA review. Next year, the trade agreement, which was negotiated in 2018 and went into effect in 2020, will be reviewed.
Although Trump's 35% tariffs do not apply to commodities that comply with CUSMA, the U.S. president has imposed additional import taxes on a number of Canadian goods, including steel, aluminum, softwood lumber, and some auto parts, regardless of whether they are covered by the trade deal or not.
The assessment isn't expected to begin until July 2026, but there have been concerns that it might begin sooner.
Ontario Premier Doug Ford warned last week that Trump could choose to suddenly "pull the carpet out from underneath us" by opening up CUSMA as early as this fall.
"Let's be prepared. I think it'll be coming in November. He's going to come at us with double barrels, so we better be ready and throw everything and the kitchen sink at this,"
Ford told reporters last week.
What are the main topics Carney plans to discuss during the Mexico visit?
Both leaders aim to boost trade between Canada and Mexico, addressing challenges caused by US tariffs and exploring ways to increase economic cooperation. They plan to discuss securing and improving supply chains, which are critical for both countries' economies, especially in light of disruptions caused by US trade policies.
Enhancing infrastructure to support trade and economic growth is expected to be a significant focus, including port-to-port trade and logistics improvements.
Discussion will include the impact of US tariffs, particularly the Section 232 tariffs on steel, aluminum, and automotive imports, and the upcoming review of the US-Mexico-Canada Agreement (USMCA).