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Canada and Mexico boost trade as US threatens harsher tariffs

Sep 19, 2025, 8:27am EDT
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The leaders of Canada and Mexico. Raquel Cunha/Reuters
Raquel Cunha/Reuters

The leaders of Canada and Mexico agreed to boost trade and increase cooperation after a high-stakes meeting that comes as the US threatens harsher tariffs on its neighbours.

Canada’s Mark Carney and Mexico’s Claudia Sheinbaum held talks as officials began a review of the US-Mexico-Canada trade agreement, under which around $2 trillion worth of goods is exchanged every year.

Trump has repeatedly threatened to disband the pact — agreed during his first term — if Canada and Mexico, the US’ two biggest trading partners, fail to heed his demands, such as halting fentanyl flows to the US and curbing Chinese investment. As a possible protective measure, Ottawa and Mexico City vowed Thursday to increase bilateral trade.

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