OTTAWA--Canada introduced additional measures to help the domestic steel industry cope with 50% U.S. tariffs, including limits on how much foreign-made steel -- with the exception of the U.S. and Mexico -- can enter the country before facing hefty duties.

The impact on effective tariff rates is expected to be moderate. BofA estimates these could rise to 4.2% for Canada and 6.9% for Mexico, up from 3.6% and 6.2%, respectively, due to the high share of USMCA-compliant goods in total trade flows.

Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney have agreed to bolster trade collaboration as U.S. tariffs loom. The leaders plan to uphold the U.S.-Canada-Mexico trade agreement and strategize negotiations with the Trump administration.

Slowing exports to China helped the deficit to balloon as the value of items shipped from Mexico to China declined for a second consecutive year.

The Canadian prime minister said it may not be possible to escape U.S. tariffs even with a bilateral agreement to resolve the current tariff row.

Mexican President Claudia Sheinbaum and Canadian Prime Minister Mark Carney aim to strengthen trade ties in response to impending U.S. tariffs. Both leaders emphasize the importance of respecting the existing trade agreement and share experiences regarding communication from U.

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.

An Indian trade delegation has also reached Washington for fresh talks on a trade deal with the United States.