Canada’s Carney heads to Mexico to discuss trade before a review of their US trade deal

President Claudia Sheinbaum speaks at the annual Independence Day military parade, in Mexico City, Tuesday, Sept. 16, 2025. Photo by Fernando Llano /AP

Article content

TORONTO (AP) — Canadian Prime Minister Mark Carney heads to Mexico on Thursday in an effort to diversify trade as America’s neighbors brace for a review of the free trade deal with United States.

Article content

The United States-Mexico-Canada trade pact, or USMCA, is up for review in 2026. More than 75% of Canada’s exports and more than 80% of Mexico’s go to the U.S.

Article content

Article content

Canadian Sen. Peter Boehm said Carney and Mexican President Claudia Sheinbaum will commiserate about U.S. President Donald Trump.

Article content

Article content

“What are they hearing from the Americans, what we are hearing. It’s an opportunity to talk about how to handle the U.S. administration going forward,” Boehm said.

Article content

Article content

Carney is looking to improve relations with Mexico during his two-day visit after some of Canada’s provincial premiers talked last year about cutting Mexico out of any new free trade deal with the U.S.

Article content

Trump lumped Canada in with Mexico on fentanyl smuggling and promised sweeping tariffs on both countries.

Article content

Ontario Premier Doug Ford said then that Trump comparing Canada to the Mexico was “the most insulting thing I’ve ever heard from our friends and closet allies, the United States of America.”

Article content

Boehm said the comments by the premiers, which he deemed out of their lane, upset the Mexicans.

Article content

“The Mexicans are particularly sensitive on these matters and there was concern about that, no doubt,” Boehm said.

Article content

Boehm represented the Canadian government when Sheinbaum was sworn in as Mexico’s president last year and is pushing for more engagement with Mexico. He said relations recently improved, noting Mexico appreciated Carney inviting Sheinbaum to the G7 summit in Alberta in June. Carney also sent his foreign minister as well as his finance minister to meet with Sheinbaum in August.

Article content

Article content

“A lot of people don’t realize that we trade more with Mexico than we do with the entire European Union, all of the Europe, including the U.K.,” Boehm said. “It’s a pretty big deal for us.”

Article content

Mexico is Canada’s third-largest trading partner after the U.S. and China. Canada was Mexico’s fifth-largest trading partner in 2024.

Article content

But trade with the U.S. remains paramount for both countries and preserving the free trade pact will be critical.

Article content

A key exemption for Canada and Mexico shields the vast majority of goods from the punishing duties. Canadian and Mexican companies can claim preferential treatment under the USMCA. But Trump has some sector-specific tariffs, known as 232 tariffs, that are having an impact. There is a 50% tariff on steel and aluminum imports.

Article content

“Trump looms over this visit. Mexico and Canada now share a common threat from the U.S,” said Nelson Wiseman, professor emeritus at the University of Toronto.

Article content

“While both leaders are interested in expanding their countries trade with each other, I think their priority is to strategize on how to deal with Trump and the coming renegotiation of the USMCA. Carney and Sheinbaum now recognize that tag-teaming Trump may be more effective than competing for separate deals with Trump, although they are still angling for them.”