Mexico and Canada, which have bet heavily on free trade, are now facing an economic stress test rivaling the global financial crisis and pandemic. The two countries have signed over 15 treaties each giving them open access to markets of more than 50 countries, with the most significant being the USMCA, a renegotiated version of the 1994 NAFTA.
Due to the impact of President Trump’s 25% tariffs, both Mexico and Canada are feeling the effects. The USMCA has largely eliminated barriers to trade between the three countries, with over 80% of their exports going to the US. As a result, the economies of both countries are under significant pressure.
Source: https://www.wsj.com/world/americas/canada-and-mexico-gambled-on-a-free-trade-future-the-bet-is-turning-sour-d5e5f880