Since joining the United States-Mexico-Canada Agreement, Mexico has become a backdoor for the entry of automobiles, auto parts, and other Chinese products into Canadian and U.S. markets, jeopardizing the livelihoods of Canadian and American workers. Ontario Premier Doug Ford's comments highlight the implications for Canada and Mexico as Donald Trump prepares to return to the White House, promising tariffs on imported products and a renegotiation of the USMCA that binds the three countries.
Ontario, being the heart of Canada's automotive industry with a population of approximately 16 million people, has raised the possibility of negotiating a separate trade agreement with the U.S. unless Mexico aligns with its North American partners on Chinese imports. Ford demanded that Mexico at least match the tariffs imposed by the U.S. and Canada on Chinese imports, arguing that otherwise Mexico should not enjoy access to the world's largest economy.
In a recent statement, Ford called Mexico the backdoor for Chinese products in Canada and the United States, advocating for a direct bilateral trade agreement between the U.S. and Canada that prioritizes workers in these countries. The comments highlight the need for free trade to be fair and equitable.
In July, it was reported that Mexico imports about $119 billion annually from China, although Mexican authorities deny exporting Chinese automobiles to the U.S. and point out that no Chinese manufacturer produces vehicles in Mexico. On the other hand, Canada has announced the application of tariffs on Chinese products such as electric cars, steel, aluminum, and is considering imposing tariffs on other manufactured products from China, such as batteries and semiconductors.
Mexico imposed tariffs on Chinese steel in early 2024 to curb its flow into the U.S. and Canada, intending to strengthen trade ties with its North American partners. Ford has expressed his willingness to consider a bilateral trade agreement between Mexico and Canada, but emphasizes that Mexican products are harming Canadians.
Ford's comments followed a warning from Trudeau about the potential consequences for American workers if tariffs are imposed on Canadian products by the new Trump administration. Lana Payne, national president of Unifor, the union that represents Canadian auto workers, has warned that any tariff regime would have a serious impact on jobs in Canada.
