Foreign Affairs Minister Mélanie Joly is not escalating a war of words with Mexico, after the Mexican president criticized Canada’s culture and its framing of border issues.
Ed Clissold, chief U.S. strategist of Ned Davis Research, talks about the potential effects of Trump's presidency on markets.
The rift between the two trading partners started with U.S. president-elect Donald Trump’s declaration that he plans to impose 25 per cent tariffs on all goods from both countries unless they stop the flow of migrants and illegal drugs into the U.S. In a Monday press conference, Mexican President Claudia Sheinbaum said Mexico “must be respected, especially by its trading partners.”
Asked to respond, Joly said she is reaching out to Mexican officials after speaking with the U.S., including about the “very important trade agreement” that includes all three countries. Christopher Sands, director of the Canada Institute at the Woodrow Wilson Center in Washington, said tensions between both countries played out in the NAFTA renegotiation, when there was limited communication between Ottawa and Mexico City.
He said Washington would rather have a trade pact with all three countries so it can limit the time and attention it needs on continental issues.“I think Donald Trump looks at this going into 2026 and says, ‘Great, divide and conquer.’”
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