North American trade relations have recently become tense due to the imposition of tariffs by the United States. Canada and Mexico, as important trading partners of the United States, have respectively stated that they will take countermeasures. Canadian Foreign Minister Jolly hinted that oil and gas exports may be used as bargaining chips in negotiations, while Mexican President Hornbaum expressed the possibility of seeking alternative trading partners. The uncompromising attitude of both countries not only highlights the complexity of the North American trade war, but also adds uncertainty to the future trade pattern.

1. Canada's Countermeasures Strategy

Canadian Foreign Minister Jolly made it clear at a Toronto business conference on Wednesday (March 5) that if the United States escalates tariffs on Canadian imports, Canada may use oil and gas exports as bargaining chips in negotiations. Canada is the largest energy supplier to the United States, exporting approximately 4 million barrels of oil per day, accounting for 90% of its total crude oil exports. Jolly emphasized that energy exports are Canada's "trump card", and the United States is well aware of this. However, Alberta, Canada's major energy exporting province, opposes this and says it will never accept the idea of reducing energy exports to the United States.

2. Mexico's response measures

Mexican President Hornbaum has stated that Mexico may seek other trading partners after the United States imposed tariffs. She pointed out that if the United States continues to implement tariff measures, Mexico will engage with Canada and other countries to readjust the trade alliance. Xienbaum also plans to have a phone call with US President Trump on the tariff issue and emphasizes that Mexico's economy is in good condition and will not succumb to external pressure. In order to rally domestic support, she proposed holding a rally at the historic Zocalo Square in Mexico City to announce retaliatory tariff measures against the United States.

3. Market reactions and economic impacts

Despite the escalation of trade tensions, the Mexican peso rose slightly by 0.84% against the US dollar on Wednesday to 20.41 pesos, demonstrating market confidence in the resilience of the Mexican economy. However, the new 25% tariffs imposed by the United States on Mexico and Canada came into effect on Tuesday, which is expected to severely impact the supply chain and change long-term trade partnerships. The countermeasures taken by Canada and Mexico may further exacerbate economic uncertainty in North America.

summarize

Canada and Mexico have shown firm positions in the face of US tariff threats, using energy exports and seeking new trading partners as countermeasures, respectively. This not only reflects the complexity of North American trade relations, but also highlights the determination of both countries on economic sovereignty issues. In the future, with the further development of the trade war, the economic landscape of North America may face significant adjustments, and the joint counterattack of Canada and Mexico will become a key factor affecting the direction of the situation.

The intensification of trade wars usually triggers market risk aversion, and investors tend to shift their funds to safe haven assets such as gold. The countermeasures taken by Canada and Mexico may further escalate the trade conflict with the United States, leading to increased market concerns about the global economic outlook. This uncertainty will drive up demand for gold, thereby supporting the rise in gold prices. In addition, if the trade war leads to a weakening of the US dollar, gold prices may further rise; On the contrary, if the US dollar strengthens, gold prices may face certain pressure.