Canada and Mexico are bolstering relations, as Prime Minister Mark Carney and Mexican President Claudia Sheinbaum have agreed to strengthen ties between the two countries.

Following their meeting in Mexico City, the two leaders announced a commitment to build stronger connections in trade and security during a joint press conference. There, Carney declared, “Today, we’re beginning a new era of elevated cooperation with a comprehensive strategic partnership.”

He added, “We will scale up our engagement in foreign affairs, in trade and investment, in agriculture, natural resources, in energy, finance, health, the environment, public safety, and security.”

Canada and Mexico have formal diplomatic ties that span over eight decades, which Carney mentioned in his speech. This agreement is set to deepen the partnership between the two countries.

Both countries have been affected by US President Donald Trump’s trade war, with 50% tariffs on Canadian steel and 25% on a selection of Mexican pharmaceuticals, as well as another 25% fentanyl tariff on Mexico.

In July 2026, the USMCA (United States-Mexico-Canada Agreement), a trade agreement among the three countries, is due for a formal review by all parties.

Amid the trade war, this negotiation is expected to come with uncertainties, as there’s a chance the agreement may not be extended. Trump is likely to seek renegotiation of the deals.

The three countries have high economic ties—Canada and Mexico are the top trading partners of the US. A large percentage of Canada’s and Mexico’s exports go to the US, over 75% and 80%, respectively.