Canada and Mexico have agreed to deepen trade ties as Canadian Prime Minister Mark Carney said the country “can’t rely” on the U.S. alone as a trade partner.
Canada is the U.S.’s largest source of seafood, exporting USD 3.9 billion (EUR 3.7 billion) worth of seafood to the U.S. in 2024. The country is a major source of snow crab and lobster, along with a range of other species.
However, trade relations have been strained since U.S. President Donald Trump implemented a 25 percent tariff on all goods from both countries, a move he had threatened soon after winning election in 2024. While Trump paused those tariffs in February, he later implemented a new set of 25 percent tariffs in March before once again delaying them days later on a range of goods – including seafood.
Trump then went on to threaten Canada with a 35 percent tariff, which he ultimately implemented. However, goods that comply with the United States-Mexico-Canada Agreement (USMCA) – which includes seafood – are not subject to the tariffs.
With tariffs and trade rates changing back and fourth five times in a matter of months, Carney said the country is looking to diversify its markets, AP news reported.
“The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression,” he said. “We have to take care of ourselves because we can’t rely on one foreign partner.”
Carney’s comments come a month after he met with Mexican President Claudia Sheinbaum in Mexico City in meetings that reportedly featured discussions on deepening the two countries’ trade ties. BBC News reported Carney and Sheinbaum vowed to cooperate on both trade and security during Carney’s first visit to the country since his election in April.
"Our agreement today will expand and deepen the partnership so that the next 30 years hold even greater promise than the last 30 years have delivered," Carney said.
Meanwhile, the USMCA, which was established in 2018 under negotiations led by the first Trump administration in a bid to revamp the North American Free Trade Agreement, is closing in on a review in 2026. The U.S. Trade Representative recently announced a public consultation process requesting comments from U.S. businesses ahead of the review, which will take place on 1 July 2026.
