#us-canada-trade-tensions

#us-canada-trade-tensions

"First of all, the Chinese have huge direct support for their auto companies. They have enough capacity in China to cover all the manufacturing, all the vehicle sales in the United States."

Mexico's equity market does not trade in isolation from Washington. The country's economic relationship with the United States, governed by the United States-Mexico-Canada Agreement (USMCA), is the single biggest external variable for EWW over the next 12 months. When trade flows are stable, Mexican exporters, industrials, and materials companies see reliable demand. When that relationship is stressed, the fund reacts quickly.

Sales are down nearly 70 percent at Jahn Engineering, a tool and die shop that serves automakers here and in the United States. Dozens of workers have been let go following decisions made in the White House. The Canadian auto industry has been rocked by President Donald Trump's abandonment of subsidies for electric vehicles and embrace of tariffs.

Driving the news: Trump wrote on Truth Social Monday that he'd block the bridge unless the U.S. is "fully compensated" for everything America does for Canada. He said negotiations would begin immediately and demanded U.S. ownership of "at least one half" of the project. Reality check: The bridge is jointly owned by Michigan and Canada, and the Canadian government completely financed the project, according to the Windsor-Detroit Bridge Authority.

It was a rough week for the Canadian economy. GM laid off 500 workers at a plant in Oshawa, Ont. New threats from the White House targeted Canada's aerospace industry. And Statistics Canada announced its preliminary estimates show gross domestic product contracted in the fourth quarter of last year. Looming over all that bad news is a question about how much and how quickly Canada can realistically expect to diversify its exports.