Ontario Premier Floats US-Canada Trade Deal That Cuts Out Mexico

The premier of Canada’s largest province wants the country to negotiate its own trade agreement with the US, unless Mexico aligns itself with its North American partners on Chinese imports.

(Bloomberg) — The premier of Canada’s largest province wants the country to negotiate its own trade agreement with the US, unless Mexico aligns itself with its North American partners on Chinese imports.

Ontario Premier Doug Ford said Mexico should “at the very least” match US and Canadian tariffs on Chinese imports, or “they shouldn’t have a seat at the table or enjoy access to the largest economy in the world.”

In a post on X, the premier called Mexico “a backdoor” for Chinese goods into Canada and US. “We must prioritize the closest economic partnership on earth by directly negotiating a bilateral US-Canada free trade agreement that puts US and Canadian workers first,” he said.

Ford’s comments underscore the high stakes for Canada and Mexico as Donald Trump prepares to return to the White House. The president-elect has promised tariffs on imported goods and a reopening of the trade agreement that binds the three countries. 

Ontario, with a population of about 16 million people, is the heartland of Canada’s auto industry. It’s home to assembly lines owned by Ford Motor Co., General Motors Co., Toyota Motor Corp., Honda Motor Co. and Chrysler parent Stellantis NV, as well as parts manufacturers that serve plants both sides of the Canada-US border. 

In August, Canada announced it would implement a 100% tariff on electric cars and a 25% levy on steel and aluminum from China, broadly in line with levels proposed by the Biden administration. Prime Minister Justin Trudeau’s government has also opened consultations on potential tariffs against other Chinese-made goods, including batteries, battery parts and semiconductors.  

Mexico argues it’s already doing its part, imposing tariffs earlier this year designed to curb the flow of steel from China after the US complained it was ending up in products shipped north across the border. President Claudia Sheinbaum’s officials have been talking about how to close their own trade imbalance with China and strengthen ties with their North American partners. 

A spokesperson for Mexico’s economy ministry didn’t immediately respond to a request for comment. In July, the finance ministry said the country imports about $119 billion annually from China, adding that it would seek to reduce that flow of goods over time. Officials deny that Mexico exports Chinese cars to the US, pointing out that no Chinese automaker produces vehicles in the country.

Ford’s comments follow a warning from Trudeau, who said Friday that US workers would suffer the consequences of any tariffs or trade barriers imposed on Canadian goods by Trump’s new administration. 

Any tariff regime would also have “a very serious impact on Canadian jobs,” said Lana Payne, national president of Unifor, the union that represents thousands of Canadian autoworkers. 

Ontario has argued that its trade with the US is balanced and there’s no need for the US to apply tariffs. Two‐way trade between Ontario and the US totaled more than C$493 billion ($354 billion) in 2023 and has risen 26% since 2018, according to the provincial government’s latest economic statement. The province was the top export destination for 17 US states last year. 

David Paterson, the Ontario government’s representative in Washington, told Bloomberg News that a tariff regime “would be self-defeating and would punish Americans as much as it would punish Canadians.” 

—With assistance from Laura Dhillon Kane, Maya Averbuch and Alex Vasquez.