Carney and Sheinbaum Forge Stronger USMCA Ties in Mexico City Summit
High-stakes talks heat up as North America's power players align ahead of trade deal review.
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Watchdog groups remain skeptical: 'When bankers and politicians shake hands, someone’s pockets get lighter.'
Canada and Mexico unite to pressure Trump on tariffs
Carney is bringing close to a dozen corporate leaders. Among them are Bank of Nova Scotia CEO Scott Thomson, TC Energy Corp. CEO Francois Poirier, Canadian Pacific Kansas City Ltd. CEO Keith Creel and ATCO Ltd. chair and CEO Nancy Southern.
Canada and Mexico approach the meetings with a shared objective of persuading U.S. President Donald TRUMP to dial back tariffs on key sectors like steel and autos. At the same time, Carney and Sheinbaum want to repair ties after a string of disputes between Ottawa and Mexico City.
Mexico’s irritation flared again last fall after some Canadian politicians criticized Mexico’s trade ties with China and floated the idea of a two-country pact between Washington and Ottawa. Ontario Premier Doug Ford said at the time that comparing Canada to Mexico is “the most insulting thing I have ever heard.”
The visit follows Mexico’s MOVE to prepare tariffs of up to 50% on cars, auto parts, steel and other imports from China and several Asian exporters. Carney is expected to view the step favorably.
Last year, Canada lifted duties on Chinese electric vehicles to 100% and added new charges on Chinese steel and aluminum. Despite the USMCA giving Canada and Mexico advantages amid the ongoing trade tensions, neither Carney nor Sheinbaum has won relief from U.S. tariffs.
Trump set duties of 35% on Canada and 25% on Mexico linked to fentanyl trafficking and unlawful migration, though many items remain exempt under the pact.
Over the summer, officials looked at how Canadian firms and investors could support projects in Mexico that would speed two-way trade, such as ports and rail links, according to a person aware of the discussions.
The talks also covered strengthening energy security across both conventional generation and renewables. Sheinbaum has said Carney will spend most of Thursday in a series of meetings at the palace.
Canada holds significant stakes in Mexico’s mining, natural gas and rail sectors. During the two-day visit, Carney will also meet diplomats and business leaders and attend an event marking Canadian wheat shipments by rail to Mexico.
This marks the first stand-alone trip to Mexico by a Canadian prime minister since Trudeau met President Enrique Peña Nieto in 2017. Trudeau returned in 2023 for the “Three Amigos” summit with Joe Biden and Andrés Manuel López Obrador.
In June, Carney invited Sheinbaum to the Group of Seven summit he hosted in Kananaskis, Alberta. She planned to meet Trump there, but the U.S. president left before her arrival due to the Israel-Iran conflict.
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