Mexico will defend its free trade agreement with the United States and Canada despite President Donald Trump's hostile trade measures, Mexican President Claudia Sheinbaum declared on May 7.

"We will defend the USMCA because it has been beneficial for the three countries. If President Trump takes a different approach, we will be prepared for any circumstance, but clearly we want the USMCA to remain," Sheinbaum stated during her morning press conference.

The United States-Mexico-Canada Agreement (USMCA), which replaced NAFTA in July 2020 after Trump pushed for renegotiation during his first term, is up for review by July 2026.

Mexico surpassed China in 2023 as the United States' largest trading partner, with more than 80% of Mexican exports destined for US markets. Sheinbaum has previously described the USMCA as "the only way we can compete with Asian countries, particularly China" and "one of the best trade agreements in history" – echoing Trump's earlier praise for the deal.

Though the returning US president has implemented various tariffs targeting Mexico as part of his broader trade policy, he excluded the country from his list of nations facing steep "reciprocal tariffs." However, Mexican automotive manufacturers and steel and aluminium exporters still face duties.

Sheinbaum pointed to Mexico's preferential treatment compared to other nations as evidence of the USMCA's importance, noting that Trump "speaks highly" of the agreement. "The USMCA has been maintained in many areas, with the exception of some issues in the automotive, steel and aluminium sectors, which we are working on," she said.

The president's comments highlight Mexico's diplomatic approach to navigating trade tensions while preserving the core economic relationship with its northern neighbour.