Tensions are escalating between Mexico and Canada amid a trade and tariff dispute sparked by U.S. President-elect Donald Trump’s threats to impose steep levies on both countries. Trump has proposed a 25% tariff on all goods and services from Mexico and Canada, framing the move as a measure to combat illegal immigration and fentanyl trafficking. Both nations are scrambling to negotiate with Trump to prevent economic fallout.

The dispute has led to public and diplomatic sparring. Canadian leaders, including Prime Minister Justin Trudeau, have considered pursuing a bilateral trade pact with the U.S., excluding Mexico, a move Mexico’s negotiator called a “betrayal.” Canada has also highlighted differences in border security, contrasting its lower number of migrant interceptions with Mexico’s significantly higher figures.

Mexican President Claudia Sheinbaum has fired back, defending her country’s handling of migration and fentanyl while criticizing Canada’s drug policies. She also asserted Mexico’s cultural superiority, claiming Canadians “could only wish” for Mexico’s rich history and heritage. Trudeau recently secured a diplomatic win by meeting with Trump ahead of Sheinbaum, but no firm agreements were reached.

Both nations face growing pressure to address the situation as Trump continues to stoke divisions between them. Experts warn that the U.S. leader’s tactics of “divide and conquer” could exacerbate the rift between Mexico and Canada, undermining collective efforts to mitigate the economic and political impact of the proposed tariffs.