March 07, 2025
President Donald Trump’s 25% tariffs are significantly impacting two of the United States’ closest trading partners: Canada and Mexico. These tariffs are disrupting their access to the US market, increasing uncertainty, and raising concerns about the integrity of the USMCA. In response, both nations are exploring diversification strategies and strengthening their bilateral relations, particularly in key sectors like mining.
Historically, the economies of Canada and Mexico have been closely intertwined with that of the United States, making them vulnerable to shifts in US trade policy. However, the imposition of these tariffs has spurred efforts to seek economic growth beyond the United States, according to Cameron Mackay, Canada’s Ambassador to Mexico, during the Mexico Mining Forum 2025 PDAC.
Mackay notes that despite the challenges, the tariffs present an opportunity to explore new avenues for collaboration. “Our strategy has always been to ensure that the strong, collaborative approach continues, not just with the United States but with other parts of the world as well. The tariffs, while problematic, offer us an opportunity to rethink and diversify our relationships — creating new opportunities for Canadian businesses in Mexico and vice versa. We must take the chance to modernize and increase foreign investment in key sectors such as mining and energy while simultaneously ensuring we’re investing in sustainability and long-term strategies,” he says.
Mackay explains that both Canada and Mexico are rich in strategic minerals crucial for global supply chains, especially in sectors like renewable energy, technology, and infrastructure. However, to fully exploit these resources, both countries need to make substantial investments in exploration, mining infrastructure, and sustainable practices.
Mexico’s renewed interest in opening its mining sector to foreign investment exemplifies how both nations can collaborate to foster economic growth while reducing reliance on the United States, Mackay explains. “In the face of uncertainty, this is a critical moment for both Canada and Mexico to assert their leadership in the global mining industry. By embracing strategic partnerships and forward-thinking investments, we can not only weather the current storm but build a more resilient and diversified future together,” he says.
Mackay adds that despite increased integration between Canada and Mexico, uncertainty with the United States will persist, particularly regarding the integrity of the USMCA. “If Trump wants a deal with Mexico and Canada, now is the time. However, there are deeper objectives behind these tariffs, and we must wait to see how they evolve,” he says.
Given this uncertainty, Mackay urges both Canada and Mexico to continue focusing on diversifying their economic ties. “Strengthening their bilateral relationship through strategic investments and collaborations will be crucial in navigating the challenges ahead,” says Mackay.
Source: (Mexico Business News)
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