Canada and Mexico have agreed to collaborate with the U.S.to address auto tariffs, following the expiration of the Canada-United States-Mexico Agreement (CUSMA) by July 1.

Mexico's Foreign Affairs Secretary, Roberto Velasco Álvarez, emphasized that the auto industry will be a key focus in negotiations with Washington to maintain low-trade barriers since NAFTA's inception in 1994.The U.S.has imposed punitive tariffs on Chinese vehicle imports, with Trump-era policies targeting Chinese-made electric vehicles (EVs) like MG Motor, Chery, and BYD.Canada and Mexico aim to secure a long-term trade deal instead of annual reviews, which create uncertainty for investors.

Canada's Foreign Affairs Minister, Anita Anand, highlighted cooperation on auto regulations and shared efforts to combat illegal fishing using Canadian satellites.The trilateral talks will proceed when 'appropriate,' with Mexico and the U.S.set for negotiations next week, while Canada and the U.S.have yet to hold talks.The agreement's renewal remains uncertain, with potential implications for North American trade and industry.