Mexico and Canada mull trade maneuvers as Trump proposes “External Revenue Service”

President Donald Trump talks with Canada's Prime Minister Justin Trudeau during a North Atlantic Treaty Organization Plenary Session at the NATO summit back in 2019.
President Donald Trump talks with Canada's Prime Minister Justin Trudeau during a North Atlantic Treaty Organization Plenary Session at the NATO summit back in 2019.
REUTERS/Kevin Lamarque

Incoming US President Donald Trumpposted on Tuesday that he will create an “External Revenue Service” to oversee his planned trade tariffs, underlining his commitment to these policies – much to the chagrin of America’s neighbors.

“We will begin charging those that make money off of us with Trade, and they will start paying, FINALLY, their fair share,” wrote Trump.

The news came a day after Mexican President Claudia Sheinbaumlaid out a plan to decrease Mexico’s trade deficit with China in what was widely seen as an olive branch to Trump.

By aligning more closely with Trump against China, Sheinbaum hopes she can carve out a special exception for Mexico, and a stronger hand in renegotiations of the US-Mexico-Canada trade agreement. Her administration has already cracked down on the import of counterfeit goods from Asia and placed tariffs on Chinese e-commerce platforms Shein and Temu. She also plans to cut down on reliance on imports for textile and auto manufacturers based in Mexico — but whether that will spare her the wrath of the ERS is yet to be seen.

North of the border, meanwhile, outgoing PM Justin Trudeau is also working on a plan to defend Canada’s trade interests with the US. He will hold a cabinet retreat next week to hammer out a potential response to Trump’s tariffs.

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Getting access to energy, whether it's renewables, oil and gas, or other sources, is increasingly challenging because of long lead times to get things built in the US and elsewhere, says Greg Ebel, Enbridge's CEO, on the latest "Energized: The Future of Energy" podcast episode. And it's not just problems with access. “There is an energy emergency, if we're not careful, when it comes to price,” says Ebel. “There's definitely an energy emergency when it comes to having a resilient grid, whether it's a pipeline grid, an electric grid. That's something I think people have to take seriously.” Ebel believes that finding "the intersection of rhetoric, policy, and capital" can lead to affordability and profitability for the energy transition. His discussion with host JJ Ramberg and Arjun Murti, founder of the energy transition newsletter Super-Spiked, addresses where North America stands in the global energy transition, the implication of the revised energy policies by President Trump, and the potential consequences of tariffs and trade tension on the energy sector. “Energized: The Future of Energy” is a podcast series produced by GZERO Media's Blue Circle Studios in partnership with Enbridge. Listen to this episode at gzeromedia.com/energized, or on Apple, Spotify,Goodpods, or wherever you get your podcasts.