Canada’s PM Carney seeks a reset with Mexico as US tariff pressures mount

Canadian prime minister Mark Carney will travel to Mexico on 18 September 2025 in an effort to mend frayed relations and reinforce trade cooperation, as both countries continue to grapple with punishing tariffs imposed by the United States.

Carney is set to meet Mexican president Claudia Sheinbaum at the National Palace, with discussions expected to centre on strengthening supply chains, expanding infrastructure and enhancing bilateral commerce. A joint press conference is likely to follow, underscoring the significance of the visit at a time of heightened trade uncertainty.

The diplomatic outreach comes after relations cooled last year when Canadian officials suggested that Ottawa might pursue a direct trade arrangement with Washington, sidelining Mexico. Since then, Carney has sought to rebuild trust, inviting Sheinbaum to the G7 summit in Canada and assuring Mexico that discriminatory restrictions, such as steel import curbs, would not be applied.

Both countries have been hit by American tariff policies and are preparing for upcoming negotiations on the United States–Mexico–Canada Agreement (USMCA). Ottawa has also been pursuing a broader strategy of reducing its reliance on US markets by diversifying trade ties across North America and beyond.

Key priorities for the talks are expected to include:

• Upgrading port and logistics infrastructure to ease cross-border trade flows;

• Building resilient and diversified supply chains less dependent on the US;

• Expanding cooperation in clean energy, particularly liquefied natural gas exports;

• Advancing joint projects on critical minerals vital to renewable energy and advanced manufacturing;

• Addressing tariff impacts on Canadian industries, including steel and aluminium.

Carney’s major projects initiative, aimed at boosting infrastructure and job creation to support long-term growth, will also be discussed as a foundation for deeper trade cooperation with Mexico.

Although no new trade deal or tariff rollback is expected to be formally announced during the visit, Canadian officials view the engagement as an essential step in shoring up economic relations with Mexico ahead of difficult negotiations with Washington.

Opposition parties in Canada have, however, criticised the government for failing to secure a bilateral trade pact with Mexico. Meanwhile, Carney’s administration maintains it has never sought an exclusive deal without US participation.

The visit is seen as a crucial step in consolidating the Canada–Mexico partnership, demonstrating both nations’ determination to withstand US tariff pressure while strengthening ties in infrastructure, energy, and high-value industries.