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Canada and Mexico have agreed to boost cooperation as trade uncertainty grows under Trump’s tariff policies. Following talks in Mexico City, both nations pledged unity in negotiations with Washington ahead of the 2026 USMCA review. Tariffs of up to 50% on Canadian steel and aluminum and sector-specific duties on Mexico have disrupted supply chains, raising costs. Analysts warn stalled talks could strain North America’s competitiveness, while compliance with USMCA rules and alternative sourcing are seen as key strategies.

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