Mexico is looking to expand trade with Canada in response to President Donald Trump’s 25% tariffs on imports from both countries.
Mexican President Claudia Sheinbaum said that her country might redirect its economic strategies if the tariffs continue with Canada as a key partner.
The move follows uncertainty in North American trade, with Trump’s decision to target Canadian and Mexican goods.
While Prime Minister Justin Trudeau has struck back with retaliatory measures, Sheinbaum remains open to negotiations before finalizing any counter-tariffs.
“It is a very definitive moment for Mexico,” Sheinbaum said on Wednesday.
“Our economy is fine, but there will be no submission.”
Sheinbaum stated that if the tariffs remain, Mexico will “reach out to Canada and other nations.”
Sheinbaum plans to address Mexican citizens on March 9 in Mexico City’s historic Zocalo to outline her response, which includes potential retaliatory duties.
The Mexican peso has shown resilience, slightly strengthening to 20.41 per US dollar on Wednesday, but experts caution that
if the tariffs continue, it could strain crucial sectors such as Mexican automotive manufacturing.
Vehicles and parts regularly cross borders multiple times before final assembly, leaving them vulnerable to higher costs and production delays.
Despite continuing uncertainty, US Commerce Secretary Howard Lutnick has hinted at selective relief for certain sectors.
“Depending on the circumstances, we will look to Canada,” said Sheinbaum, as her search for “new alliances” is underway.