A newly signed economic partnership between Canada and Mexico could spell major trouble for Iowa and Illinois, especially as the future of the U.S.-Mexico-Canada Agreement, or USMCA, hangs in the balance.
The two countries are deepening trade and security ties independent of the United States, signaling a shift that may reroute supply chains and cut the Midwest out of key export markets. Iowa corn, soy, pork, and manufacturing exports could all take a hit if Mexico and Canada focus trade inward, or bypass U.S. ports and freight routes altogether.
Canada is pushing for more direct access to Latin America through Mexican ports, while Mexico is seeking greater investment from Canada. Together, they’re exploring joint production deals that exclude the U.S.
President Trump has criticized both nations over trade and border security, and with the USMCA up for renegotiation next year, this bilateral pact may be a sign they’re preparing for a future without it.
If that happens, tariffs, supply chain costs, and lost market access could have real consequences for local jobs and economies across our area.
