Contrasting Approaches: How Mexico and Canada Are Handling Trump’s Tariffs

Contrasting Approaches: How Mexico and Canada Are Handling Trump’s Tariffs

While Canadian Prime Minister Justin Trudeau has openly criticized and retaliated against U.S. tariffs, Mexican President Claudia Sheinbaum has taken a more diplomatic, measured approach to protect Mexico’s interests.

On March 6, President Donald Trump signed an order delaying the implementation of 25% tariffs on imports from Canada and Mexico under the U.S.-Mexico-Canada Agreement (USMCA) for nearly a month, pushing the deadline to April 2.

"After discussions with Mexican President Claudia Sheinbaum, I have agreed that Mexico will not have to pay tariffs on USMCA goods," Trump wrote on social media, notably omitting any mention of Canada. He also expressed respect for Sheinbaum, thanking her for her cooperation.

His tone was markedly different when referring to Trudeau. Trump has frequently dismissed the Canadian leader as a "governor" and referred to Canada as "America’s 51st state." Mexican officials believe this contrast reflects Sheinbaum’s strategic approach in dealing with the unpredictable White House.

From the start, Sheinbaum has maintained that Mexico should stay calm and "keep a cool head" when facing Trump’s tariff threats.

Trump had long vowed to impose 25% tariffs on all imports from Canada and Mexico, accusing both countries of failing to adequately address Washington’s concerns about border security and the trafficking of illicit substances—especially fentanyl—into the U.S.

The tariffs were originally set to take effect on February 4 but were delayed for a month after negotiations with Trudeau and Sheinbaum. Both leaders agreed to tighten border security efforts to curb illegal immigration and drug smuggling. However, by late February, Trump claimed their actions were insufficient and decided to enforce the tariffs starting March 4.

At this point, Canada and Mexico began responding in starkly different ways.

Canada’s Confrontational Stance

Canada immediately denounced Trump’s tariffs as "unjust" and announced retaliatory measures.

On March 4, Ottawa imposed a 25% tariff on $21 billion worth of American imports and warned of additional duties on another $87 billion in goods if the trade dispute escalated.

During a press conference that day, Trudeau vowed that Canada "will not back down from a fight." He accused Trump of attempting to "cripple Canada’s economy to pave the way for annexation," calling the tariffs "utterly ridiculous."

Canadian provinces also took independent action. Some removed American products from store shelves, while Ontario Premier Doug Ford imposed a 25% tariff on electricity exports to three U.S. states in retaliation.

According to AP, U.S. Commerce Secretary Howard Lutnick privately urged Ford to reconsider, but the Ontario leader insisted on taking a hardline stance. Lutnick warned that Trudeau’s rhetoric and aggressive measures would not help resolve the situation.

Mexico’s Diplomatic Approach

In contrast, Sheinbaum has opted for restraint. At a March 4 press conference, she stated that Mexico would consider "tariff and non-tariff measures" to protect national interests starting March 9, signaling her preference for exhausting diplomatic channels first.

A week earlier, Mexico extradited 29 drug cartel leaders to the U.S. to face charges of murder and money laundering, including Rafael Caro Quintero, a cartel boss wanted by Washington since the 1980s.

Sheinbaum also shifted part of the discussion back onto U.S. policies, questioning the origins of the weapons fueling cartel violence and urging Washington to do more to curb illegal arms flows into Mexico. She emphasized that while Latin America might be the source of drugs, the demand for them comes from the U.S.

"Drugs may originate from Latin America, but the largest market is in the U.S.," Sheinbaum said.

"President Sheinbaum has played her hand wisely," Mexican economist Valeria Moy told BBC. "I’m not sure if it’s time to celebrate, but she has done what she can under Trump’s tariff pressure."

The Economic Stakes

Both Canada and Mexico depend heavily on trade with the U.S. Canada exports 70% of its goods to the U.S., while for Mexico, the figure is even higher at 75%.

However, the geopolitical context differs for each country.

"Trump has openly discussed airstrikes on Mexican drug cartels, which Washington has labeled terrorist organizations," noted Vina Nadjibulla, vice president for research and strategy at the Asia-Pacific Foundation of Canada. "With Canada, he has floated the idea of annexation, calling it America’s ‘51st state.’"

"Trudeau argues that Trump wants to collapse Canada’s economy to make annexation easier, which is more than just a trade war," Nadjibulla said. "For Canada, this is an existential fight, so Ottawa had to respond quickly and forcefully. This isn’t just about tariffs—it’s about national sovereignty."

Sheinbaum, on the other hand, has an advantage that Trudeau does not: time.

Canada is approaching a federal election, and Trudeau’s Liberal Party is trailing the opposition Conservatives in polls. His combative stance against Trump has sparked patriotic sentiment, helping his party narrow the gap.

In contrast, Sheinbaum, who took office in October 2024, enjoys broad support. Recent polls in February showed her approval rating at 80-85%.

"Believe it or not, despite everything Trump has done to Canada, I think Trudeau is using this tariff issue—which is mostly his own fault—as a re-election strategy. It’s fascinating to watch!" Trump wrote on social media, moments before praising Sheinbaum.

What’s Next?

Experts remain uncertain about how the situation will unfold. Some reports suggest that Washington may soften its stance and reduce tariffs on Canada and Mexico.

"But even if Trump de-escalates, trust between these nations has already been damaged," Nadjibulla warned.

The tariff dispute could also impact the renewal of USMCA, the free trade agreement Trump signed during his first term. The next review is scheduled for 2026, though negotiations could begin sooner.

"How do you negotiate a stable trade deal when one side keeps changing the rules or imposing tariffs without warning?" Nadjibulla asked.

"Even if tariffs are relaxed or lifted, the bigger issue is that Canada—and other nations—now see the U.S. as an unreliable trade partner."

(Sources: Reuters, BBC, Al Jazeera)

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