The inauguration of US President-elect Donald Trump is imminent, with only a few days remaining. As time progresses, Canada and Mexico are actively engaging in discussions to address the tariff policies that Trump has pledged to implement upon assuming office.
Canada has already devised strategies to counter these tariffs, and Mexico is now collaborating with Ottawa to alleviate the potential impacts of Trump’s economic decisions.
Earlier this week, Mexico’s newly elected President, Claudia Sheinbaum, convened with Canadian business leaders to explore avenues for enhancing business relations, trade, and investment between the two nations while opposing the US tariff initiatives, as reported by El Pais.
In November of the previous year, President-elect Trump committed to imposing significant tariffs on the United States’ three largest trading partners—Canada, Mexico, and China—outlining his approach to fulfill campaign promises that could instigate trade conflicts.
Altagracia Gómez Sierra, a spokesperson for the Mexican government, stated, “The objective of today’s meeting was not to announce new investment figures but to evaluate the progress of current investments by Canadian firms in Mexico, identify potential opportunities, and, most importantly, establish a collaborative methodology.”
This meeting marks a significant step indicating that Mexico and Canada are taking proactive measures to safeguard the United States-Mexico-Canada Agreement (USMCA), which is scheduled for review in June 2026. Trump has expressed skepticism regarding the agreement’s sustainability.
What actions has Mexico undertaken thus far?
As Trump readies to assume the presidency, Sheinbaum has engaged in public disputes with him while also demonstrating tangible outcomes that may indicate Mexico’s commitment to collaboration on issues related to migration, security, and relations with China.
It remains uncertain whether these efforts will suffice or if the threat of tariffs on Trump’s inaugural day is entirely plausible. However, experts and former diplomats assert that Sheinbaum has made commendable progress.
“It’s a very pragmatic and proactive approach by Sheinbaum and her team,” remarked Gema Kloppe-Santamaria, a global fellow at the Wilson Center’s Mexico Institute.
Since taking office, Sheinbaum has escalated an already significant crackdown on migrants heading toward the U.S. border, detaining a record 475,000 individuals between October and December. Additionally, she has indicated that Mexico may be open to accepting non-Mexican individuals deported from the United States.
What measures has Canada implemented?
In parallel, Canada has introduced a series of initiatives aimed at bolstering border security, which include augmenting personnel and upgrading technology. On Wednesday, the government revealed the deployment of Blackhawk helicopters and additional drones to improve surveillance along the shared border.
Trudeau has stated that Canada will adopt a reciprocal strategy to counteract the impact of Washington’s aggressive economic policies against Ottawa. This strategy would involve Canada imposing tariffs on goods worth hundreds of billions of dollars exported to the United States.
To negotiate or at least mitigate the adverse effects of Trump’s proposed 25 percent tariff plan on Canada’s economy, Trudeau intends to revive his ‘Team Canada’ strategy that he previously utilized during Trump’s earlier presidency.
Canada may reduce energy exports to the United States in response to President Trump’s proposed 25 percent tariff, a move that could escalate existing tensions between the two nations.
As the primary energy provider for the United States, Canada supplies around 60 percent of the crude oil that is imported. According to government statistics from 2020, Canada was responsible for 98 percent of U.S. natural gas imports, 93 percent of electricity imports, and 28 percent of uranium purchases.
