Mexico and Canada to discuss trade next week amid Trump's tariff threat

Mexican President Claudia Sheinbaum said Friday she will host Canadian Prime Minister Mark Carney for trade talks next week as the pair seek to protect their economies from Donald Trump’s trade war.Mexico and Canada are, together with the United States, members of the USMCA North American free trade agreement.

US leader Trump wants to renegotiate the deal, which he considers unfavorable to his country.

At the start of his presidency Trump lashed out at his neighbors to both the north and south over illegal migration and drug trafficking into the United States, repeatedly threatening them with stiff tariffs.

He has so far mostly spared Mexico punishment but hit Canadian goods not compliant with the North American trade deal with blistering 35-percent duties.

Carney and Sheinbaum will hold talks on Thursday.

“Both of us trade a lot with the United States but there is also a lot of Mexico-Canada trade,” Mexico’s leftist leader said.

The pair will also discuss Canadian investment in sectors such as Mexican mining, gas and rail, she added.

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Last month, Canadian Finance Minister Francois-Philippe Champagne and Foreign Minister Anita Anand visited Mexico City to prepare for Carney’s visit.

US tariffs are badly hurting Canada’s crucial auto, steel and aluminum sectors, leading to job losses.

Canada retaliated with tariffs on billions of dollars of US imports but, in a gesture aimed at facilitating a deal, Carney has since exempted US goods that fall under USMCA.