Mexico, a key U.S. partner, has taken steps to align its trade policies with the Trump administration. This year, Mexican President Claudia Sheinbaum imposed tariffs of up to 50% on imports from China and countries without trade agreements with Mexico. These measures aim to protect key sectors like steel, textiles, footwear, toys, and autos from Asian competition. Sheinbaum emphasized that these steps are in line with Washington's trade policy toward the Asian giant. Mexico also awaits decisions from its main trading partners, the U.S. and Canada, on the future of the United States-Mexico-Canada Agreement (USMCA). Despite Trump's threats to the agreement and his tariffs on specific Mexican goods, Mexico remains the U.S.'s top trading partner, surpassing China and Canada. The total value of shipments to the U.S. in the first ten months of 2025 reached approximately $448 billion. Over 80% of these shipments comply with USMCA rules, exempting them from the 25% tariffs imposed by Trump. Mexican authorities confirm the treaty will remain in effect. Canada, meanwhile, is concerned about changes in U.S. trade policy. Prime Minister Mark Carney traveled to China to sign new trade terms, including allowing Chinese electric cars into Canada. These actions raise questions about Ottawa's commitment to USMCA. Nevertheless, Sheinbaum and Carney reaffirmed their dedication to preserving the agreement to strengthen North America as a competitive trade bloc. Sheinbaum expressed readiness to bolster trade ties with the U.S. and make necessary concessions regarding China. Bilateral meetings between Mexican and Canadian leaders also aim to enhance cooperation ahead of the USMCA's annual review. Senator Ricardo Anaya stressed that for Mexico, USMCA is not just an agreement but a matter of economic life and death, as 85% of Mexican exports go to the U.S., and about 12 million jobs depend on it. The U.S. Embassy in Mexico recently allocated $23.4 million to support labor justice in Mexico under USMCA commitments. Despite trade tensions, Mexico and Canada are navigating a fine line between cooperation and competition.
