Canadian Prime Minister Mark Carney pushed back, calling the U.S. tariffs a violation of the trade agreement. "This is the latest in a series of unilateral U.S. trade actions that began with the U.S. imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement," Carney said in a statement. He added that Canada's own countermeasures merely matched U.S. actions and that his government stands ready to "intensify" trade talks.
Mexico, meanwhile, is pursuing a pragmatic course. Its negotiators are working to ease U.S. tariffs of 25% on Mexican autos and 50% on steel and aluminum, while aligning with Washington on economic security concerns, particularly the risk of Chinese goods entering the U.S. duty-free through Mexico. Ahead of the talks, Mexico took steps on environmental and export-control issues that the U.S. Trade Representative publicly acknowledged, including a certification scheme covering roughly 90% of avocado exports from Michoacán and updated dual-use export controls.
The stakes are measured in trillions. The USMCA underpins roughly $1.6 trillion in annual trilateral trade. The U.S. imported $382 billion in goods from Canada in 2025, and the new tariffs cover about 5.2% of that total. The U.S. trade deficit with Mexico reached $197 billion in 2025, up 17% from the prior year, a figure Greer has called "a challenge" and "a problem."