US Senate Rejects Trump Tariffs; Mexico 'Cools Down' as Canada 'Pivots'

The U.S. Senate has voted to reject President Trump's global tariff policy, while Mexico negotiates a "cooling-off period" ahead of a USMCA review, and Canada seeks to reconnect with China.

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A bipartisan vote in the U.S. Senate to repeal President Donald Trump's global "reciprocal" tariff policy has highlighted the growing opposition to measures that are straining trade relations with Mexico, China, and Canada.

Although four Republican senators joined Democrats to pass the measure 51 – 47, the future of U.S. trade relations with its North American neighbors remains entangled in tariff disputes and upcoming reviews of the United States – Mexico – Canada Agreement (USMCA).

Despite the Senate vote, the House of Representatives is unlikely to take any similar action. However, Thursday's vote underscores the growing frustration from both parties with policies seen as destabilizing for many U.S. farmers and manufacturers.

"For the third day in a row, bipartisan senators have made it clear that it’s time to put a stake in the heart of Donald Trump’s job-killing trade taxes," said Sen. Ron Wyden (D-Ore.), the author of the resolution, in a press release.

US - Mexico: A Fragile Balance Ahead of USMCA Review

In Mexico, President Claudia Sheinbaum said the Trump administration's tariffs were partly responsible for the country's 0.3% GDP contraction in the third quarter – the first annual decline since 2021. Mexico's industrial output has fallen by nearly 3% year-over-year, with auto and steel manufacturers hit the hardest.

"The contraction is mainly due to the delayed impact of the tariff policy imposed by the United States," Sheinbaum said during her morning press conference, adding that the downturn might only be temporary.

Despite the economic pressure, Mexican officials and U.S. Trade Representative Jamieson Greer agreed this week to extend trade negotiations aimed at preventing new tariffs on autos, steel, aluminum, and copper.

The discussions, held on the sidelines of the APEC summit in South Korea, are intended to cool tensions ahead of the 2026 USMCA review. Both governments also agreed to delay the implementation of some U.S. tariffs until at least February, providing temporary relief to industries on both sides of the border.

Mexico's Economy Minister Marcelo Ebrard described the move as a cooling-off period to maintain competitiveness and avoid further disruption to integrated North American supply chains.

However, targeted tariffs remain in place, and analysts warn that the prolonged uncertainty could discourage manufacturing investment in northern Mexico – a key automotive and electronics export hub tied to the U.S. market.

US - Canada: New Pragmatism Amid a Global Trade Reshuffle

North of the border, Prime Minister Mark Carney met with Chinese President Xi Jinping to address what both leaders called "irritants" in their relationship – including Chinese tariffs on Canadian canola, pork, and seafood.

The 40-minute meeting was described by Carney as a turning point after nearly a decade of diplomatic chill between the two nations.

Canada's move to re-engage with China comes as Trump's trade measures continue to rattle traditional alliances. On Friday, Trump said the U.S. and Canada would not be restarting trade talks, a week after he canceled negotiations over a commercial aired by the Canadian province of Ontario.

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