On Apr. 1, the Canadian Prime Minister Mark Carney and the Mexican President Claudia Sheinbaum had a “productive call” in which they discussed plans to fight the U.S. President Donald Trump’s “unjustified trade actions."
The two leaders mulled increasing mutual trade to tackle the trade war initiated by President Trump once he assumed office in January. They discussed the importance of strong trade and investment ties between the two countries due to “challenging times ahead.”
President Trump is set to announce further “reciprocal tariffs” on all countries — Canada, Mexico and China being primary targets — on Apr. 2, or Liberation Day as the president calls it.
Note that the U.S., Mexico, and Canada signed a trade agreement during Trump’s previous presidential tenure. Effective July 1, 2020, the agreement is called the United States-Mexico-Canada Agreement (USMCA). It is often referred to as the replacement of the North American Free Trade Agreement (NAFTA).
Economist hints at USMCA renegotiation ahead of 2026 midterm elections
Economist Trinh Nguyen believes that Trump’s trade war that he initiated after taking over the White House for the second time in January this year is an attempt to renegotiate the said agreement.
On March 31, Nguyen posted on X (formerly Twitter) that the U.S. has trade friction with China due to the tariff war. Trump sees Canada and Mexico as the two countries that can address the gap.
Trump isn’t happy with the current USMCA, and he is using the tariff tactics to pressurize the two countries to come to the table and renegotiate the trade agreement, Nguyen argued. However, USMCA negotiations are not due until July 2026, and the U.S. midterm elections are set to be held in November 2026.
The economist added that Trump values Canada’s commodities and Mexico’s cheap labor and wants the renegotiation to complete during the second half of 2025. It would not be wise for the president to push the tariff war through the next year, as a tumbling stock market in July 2026 won’t be helpful for the Republican Party for the mid-term elections.
If tensions rise from a renewed North American trade war, crypto could become a hedge against fiat instability — just as it has during past global uncertainties. With Canada and Mexico exploring closer economic ties, U.S. markets may react with volatility, potentially boosting Bitcoin demand. At the time of writing, Bitcoin is trading at $84,110.72, up 2.4% in the last 24 hours, per Kraken.