Senate rejection of Trump’s tariffs stirs North American trade debate

Mexico seeks to avert new duties as GDP dips; Canada rebuilds China ties amid shifting alliances

The bipartisan vote to nullify tariffs highlights pushback against import duties that have strained U.S. relations with global trade partners. (Photo: Jim Allen/FreightWaves)
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Key Takeaways:

  • The U.S. Senate passed a bipartisan resolution to repeal President Trump’s global tariff policy, reflecting growing frustration with tariffs despite the House being unlikely to take similar action.
  • U.S. tariffs have negatively impacted Mexico's economy, leading both countries to engage in trade talks and temporarily delay new duties to smooth relations ahead of the 2026 USMCA review.
  • U.S. trade policies are also straining relations with Canada, prompting Canada to seek improved ties with China while U.S.-Canada trade talks remain stalled.
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The Senate’s bipartisan vote to repeal President Donald Trump’s “reciprocal” global tariff policy highlights growing pushback against tariffs that have strained trade relations with Mexico, China and Canada.

While 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 vote in the Senate, the House of Representatives is unlikely to take any similar action. Yet Thursday’s vote underscores growing bipartisan frustration 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,” Sen. Ron Wyden (D-Ore.), author of the resolution, said in a news release.

U.S.–Mexico: Delicate balance before USMCA review

In Mexico, President Claudia Sheinbaum said the Trump administration’s tariffs were partially responsible for the country’s 0.3% GDP contraction in the third quarter — its first annual decline since 2021, according to The CEO. 

Mexico’s industrial output fell nearly 3% year over year, with automakers and steel producers hardest hit. 

“The contraction is mainly due to the delayed impact of the tariff policy imposed by the United States,” Sheinbaum said during her morning press briefing, adding that the downturn would likely be temporary as public and private investments increase later this year.

Despite economic pressure, Mexican officials and U.S. Trade Representative Jamieson Greer agreed this week to extend trade talks aimed at preventing new duties on automobiles, steel, aluminum and copper, according to Infobae

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

Mexico’s Secretary of Economy Marcelo Ebrard described the move as a “cooling-off period” to maintain competitiveness and avoid “further disruption to integrated North American supply chains.” 

Still, targeted tariffs remain in place, and analysts warn that sustained uncertainty could discourage manufacturing investment in northern Mexico — a key hub for auto and electronics exports tied to the U.S. market.

U.S.–Canada: New pragmatism amid global trade realignment

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 duties on Canadian canola, pork and seafood, according to the CBC

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 outreach to China comes as Trump’s trade measures continue to rattle traditional alliances. Trump said on Friday the U.S. and Canada will not restart trade talks, a week after he called off negotiations over an advertisement aired by the Canadian province of Ontario, according to Reuters.

Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com