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Home » Global Trade & Economics » Mexico, Canada, Exchange Barbs Over Trade with U.S.

Mexico, Canada, Exchange Barbs Over Trade with U.S.

THREE MINIATURE FLAGS ARE CLUSTERED TOGETHER, THE US FLAG IN THE FOREGROUND, THE FLAGS OF CANADA AND MEXICO BLURRY IN THE BACKGROUND

Photo: iStock/cmannphoto

December 6, 2024
SupplyChainBrain

A rift appears to be developing between Mexico and Canada, as the two jostle to get on good terms with U.S. President-elect Donald Trump, who is threatening both neighbors with punitive tariffs in his second term starting next year, according to BBC News.

Trump has threatened to impose a blanket 25% tariff on both countries when he takes office, unless they secure their shared borders with the U.S., citing concerns over illegal immigration and the smuggling into the U.S. of fentanyl.

Canada's U.S. ambassador, Kirsten Hillman, told Associated Press December 1 that during a recent dinner at Mar-a-Lago, Trump's Florida residence, Prime Minister Justin Trudeau told the president-elect that the northern border was "vastly different than the Mexican border." 

Retaliating, Mexican President Claudia Sheinbaum told the news agency November 30 that “Mexico must be respected, especially by its trading partners.” She added that Canada had its own social problems with fentanyl use, adding the country “could only wish they had the cultural riches Mexico has.”

On November 13, Ontario premier Doug Ford proposed a new bilateral trade agreement between the U.S. and Canada to replace the USMCA and cut Mexico out altogether.

Read More: Canada Calls for Ouster of Mexico in Renegotiated Trade Deal

Recently elected, Sheinbaum has struggled to find a consistent approach to the threatened tariffs. In a November 26 press conference, she threatened that Mexico would retaliate with tariffs of its own. But, on November 30 — after a telephone call with the President-elect on the phone on November 27 — she appeared to reverse direction, saying she was convinced the two countries could reach an agreement. She added that Mexico and the U.S. could collaborate in the face of Trump’s concerns on migration and drug-trafficking. 

Canadian officials have tried to position the U.S. and Canada as a united front against China, while also saying that China is using Mexico as a backdoor to flood the North American market with cheap imports.

In October, Canada imposed a 100% tariff on imports of Chinese-made electric vehicles (EV) in line with the U.S. and European Union.

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