Portuguese 
English 
Spanish 
3 min of reading 
0 comments 
Leaders Meet to Strengthen Trade and Create Alternative Routes to U.S. Pressure, Reports NDTV World
In a direct move to protect itself from the trade war imposed by the United States, Mexico and Canada are initiating a new phase of strategic cooperation. Mexican President Claudia Sheinbaum is hosting Canadian Prime Minister Mark Carney in Mexico City this Thursday. The meeting, reported by NDTV World, aims to address the strong pressure from Donald Trump to renegotiate the USMCA trade agreement.
Trump, who considers the trilateral pact unfavorable to the U.S., has been harshly criticizing his neighbors over immigration and drug trafficking issues. This protectionist offensive has forced a tactical rapprochement between the two countries, which are now seeking to strengthen their US$ 32 billion bilateral trade as an insurance policy against the instability generated by Washington.
The Shadow of Trump and Pressure on the USMCA
The U.S.-Mexico-Canada Agreement (USMCA), which replaced NAFTA in 2020, is at the center of the dispute. With a formal review scheduled for next year, Donald Trump has escalated his rhetoric, threatening to undo what he calls a “disadvantageous triple agreement” for his country. According to NDTV World, this pressure is the main catalyst for the meeting between Sheinbaum and Carney.
-
For the economist José Kobori, the USA gained a trump card to “blackmail” Brazil and undermine China’s influence by classifying the PCC and Comando Vermelho as terrorists, increasing the power to pressure companies, banks, and even Pix.
-
The labor shortage has changed its face in Brazil: companies hire 80% more, but workers stay only 6.8 months in the job, the service market becomes a “revolving door,” and businesses spend increasingly more to train teams that soon leave.
-
Chinese giant chooses SC to set up its first factory in Brazil, investing R$ 250 million and producing MRI machines costing R$ 10 million each, with 100 direct jobs and 5% of revenue allocated to research.
-
After selling a unit for R$ 115 million to pay off debts, a traditional factory in SC founded in 1932 has a new R$ 64.8 million plan denied by the court and retains about 690 workers in Joinville.
The “trade war” is already a reality for Canada. Trump imposed 35% tariffs on some Canadian products, harming vital sectors. In retaliation, Canada imposed tariffs on billions of dollars in U.S. imports, although Carney exempted products covered by the USMCA, a gesture seen by NDTV World as an attempt to facilitate an agreement and reduce tensions.
Bilateral Impact: Steel Industry and Jobs at Risk
The consequences of U.S. tariffs are keenly felt up north. NDTV World reports that Canada’s automotive, steel, and aluminum sectors are being “severely affected”, leading to a significant loss of jobs. The Canadian economy, historically dependent on its southern neighbor, is now urgently seeking to diversify its trading partners.
Mexico, on the other hand, has managed to avoid the threat of a 30% import tariff from the U.S. However, its automotive, steel, and aluminum sectors have also been hit by higher tariffs, as have those in other countries. Although the United States has long been the main destination for exports from both countries, the current instability forces a strategic reassessment.
Plan B: The Mexico-Canada Trade Route
Carney’s visit, according to statements from Claudia Sheinbaum reported by NDTV World, aims to “strengthen the Mexico-Canada relationship.” The agenda of the meeting is pragmatic: increase trade using Canadian and Mexican ports, creating a logistics route that avoids the need to cross the United States by road or rail. This is a significant logistical shift to protect the supply chains of both.
In addition to logistics, the leaders will discuss a special visa program for Mexican workers and cooperation in areas such as renewable energy and innovation. According to Carney’s statement to NDTV World before the trip, the focus is to “elevate our partnerships” and “build stronger supply chains” in light of a “changing global landscape,” aiming for greater prosperity and certainty for Canadians and Mexicans.
The Challenge of Independent Trade
Although bilateral trade between Mexico and Canada totaled less than US$ 32 billion last year, an amount over 20 times smaller than each country’s trade with the United States, according to NDTV World data – this alliance has become strategic. Trump’s pressure is forcing the neighbors to build a stronger economic bridge between themselves, independent of Washington’s politics.
Be the first to react!