Sheinbaum, Carney discuss trade ahead of Trump’s tariff deadline for Canada

On Thursday, President Claudia Sheinbaum of Mexico and Canadian Prime Minister Mark Carney engaged in a discussion regarding North American trade. This conversation took place 50 days after the U.S. government decided not to renew the USMCA free trade agreement in its present form. In a statement, Carney's office highlighted that they discussed ongoing developments affecting trade in North America and emphasized the importance of renewing the Canada-United States-Mexico Agreement (CUSMA) for greater certainty for businesses and workers.

They also touched upon the positive progress between Canada and Mexico in cross-border trade, agreeing to maintain close communication. President Sheinbaum spoke with me about ongoing trade issues affecting North America. More details about our call can be found here. As of the call's conclusion, Sheinbaum had not yet responded to the conversation.

Mexico, along with the United States and Canada, has the potential to extend the USMCA for an additional 16 years, though the Trump administration has raised concerns about the pact and its trade relationships, particularly concerning trade imbalances, energy policies, and competition with China. Even with the pact in place, Trump implemented tariffs on various Mexican and Canadian goods last year, including vehicles, steel, and aluminum.

Mexico is seeking the reduction or elimination of these tariffs during trade negotiations with U.S. officials. On Tuesday, Trump agreed to postpone 50% tariffs on Canadian goods worth approximately $20 billion annually, but these duties could resume on Saturday if Canada fails to reach an agreement with the U.S. prior to that date.

During the call, Carney expressed gratitude to Sheinbaum for Mexico's assistance in combating wildfires in Canada this summer, including the deployment of over 400 firefighters and support personnel.