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Canada and Mexico hold talks over US tariff threat

Sep 18, 2025, 6:49am EDT
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Canadian Prime Minister Mark Carney.
Ints Kalnins/Reuters

Canadian Prime Minister Mark Carney will meet with Mexican President Claudia Sheinbaum today as they look to respond to Washington’s tariff threats, which risk upending their economies.

Canada and Mexico rely on the US for the majority of their imports and exports, most of which fall within a trilateral trade agreement signed during US President Donald Trump’s first term. But Trump has threatened to renegotiate the deal — up for review next year — and impose heavy tariffs if Mexico City and Ottawa fail to crack down on drug trafficking and curb Chinese investment.

Both Carney and Sheinbaum know their nations’ prosperity “may depend on working together to deal with their shared neighbour,” The Economist argued.

A chart showing Canada and Mexico’s trade reliance on the US

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