{"id":58745,"date":"2026-02-18T19:08:28","date_gmt":"2026-02-18T23:08:28","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/trump-invokes-defense-act-for-ag-chemicals-as-canada-mexico-reaffirm-trilateral-trade-unity\/58745\/"},"modified":"2026-02-18T19:08:28","modified_gmt":"2026-02-18T23:08:28","slug":"trump-invokes-defense-act-for-ag-chemicals-as-canada-mexico-reaffirm-trilateral-trade-unity","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/trump-invokes-defense-act-for-ag-chemicals-as-canada-mexico-reaffirm-trilateral-trade-unity\/58745\/","title":{"rendered":"Trump Invokes Defense Act for Ag-Chemicals as Canada, Mexico Reaffirm Trilateral Trade Unity"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>President Trump invoked the Defense Production Act<\/strong> to secure domestic supplies of <strong>elemental phosphorus<\/strong> and <strong>glyphosate-based herbicides<\/strong>, citing critical risks to the U.S. military and food supply.<\/li>\n<li><strong>Canada and Mexico have officially declined to discuss bilateral &quot;contingency plans&quot;<\/strong> with the U.S., instead presenting a united front to preserve the trilateral <strong>USMCA<\/strong> framework.<\/li>\n<li><strong>Minister Dominic LeBlanc<\/strong> is leading Canada&#39;s largest-ever trade mission to Mexico, involving <strong>over 240 organizations<\/strong> and <strong>370 delegates<\/strong> to deepen commercial ties.<\/li>\n<li>The White House order specifically targets supply chain vulnerabilities for <strong>Bayer (<a href=\"\/stock\/BAYRY\">BAYRY<\/a>)<\/strong>, the sole U.S. producer of glyphosate, amid mounting legal and regulatory pressures.<\/li>\n<li><strong>Two-way trade between Canada and Mexico<\/strong> has surged to <strong>$56 billion<\/strong>, a twelvefold increase since 1993, highlighting the growing importance of the &quot;non-U.S.&quot; North American corridor.<\/li>\n<\/ul>\n<h2>Trump Invokes Defense Powers for Phosphorus and Herbicides<\/h2>\n<p>In a significant move for industrial and agricultural policy, President Trump signed an executive order on Wednesday to ensure an adequate supply of <strong>elemental phosphorus<\/strong> and <strong>glyphosate-based herbicides<\/strong>. The order finds that any interruption in the supply of these materials would leave the <strong>U.S. defense industrial base and food supply<\/strong> vulnerable to &quot;hostile foreign actors.&quot;<\/p>\n<p>Elemental phosphorus is a dual-use material essential for <strong>military munitions, semiconductors, and lithium-ion batteries<\/strong>, while also serving as a precursor for glyphosate. The order instructs Agriculture Secretary <strong>Brooke Rollins<\/strong> to prioritize domestic production, a move that directly impacts major players like <strong>Nutrien (<a href=\"\/stock\/NTR\">NTR<\/a>)<\/strong> and <strong>The Mosaic Company (<a href=\"\/stock\/MOS\">MOS<\/a>)<\/strong>, which dominate the North American phosphate market.<\/p>\n<p>The directive comes as <strong>Bayer (<a href=\"\/stock\/BAYRY\">BAYRY<\/a>)<\/strong>, the only domestic manufacturer of glyphosate, faces a &quot;pivotal year&quot; of litigation and potential supply constraints. By designating these chemicals as critical to national defense, the administration aims to shield the production of corn, soy, and cotton\u2014<strong>over 90% of which<\/strong> rely on these herbicides\u2014from global supply shocks.<\/p>\n<h2>Canada and Mexico Reject Bilateral Trade Paths<\/h2>\n<p>While the White House focuses on domestic supply chains, Canadian Minister <strong>Dominic LeBlanc<\/strong> confirmed that Canada has not discussed any bilateral &quot;Plan B&quot; with Mexico should the U.S. attempt to split the <strong>USMCA<\/strong> agreement. Speaking from Mexico City, LeBlanc emphasized that both nations share a &quot;singular interest&quot; in maintaining a <strong>trilateral trade deal<\/strong> and removing <strong>U.S. sectoral tariffs<\/strong> on steel and aluminum.<\/p>\n<p>LeBlanc expressed confidence in the willingness of Mexico\u2019s Economy Secretary, <strong>Marcelo Ebrard<\/strong>, to ensure the upcoming USMCA review leads to a renewed three-way partnership. <em>This unified stance serves as a direct rebuttal to suggestions from U.S. Trade Representative Jamieson Greer regarding separate negotiations with each neighbor.<\/em><\/p>\n<p>The diplomatic push is backed by a massive &quot;Team Canada&quot; trade mission, the largest in the country&#39;s history. <strong>Canadian companies from all 10 provinces<\/strong> have already signed new commercial partnerships in Mexico, targeting sectors such as <strong>advanced manufacturing, clean energy, and ag-tech<\/strong>.<\/p>\n<h2>Strengthening the &quot;Other&quot; North American Corridor<\/h2>\n<p>The deepening relationship between Ottawa and Mexico City reflects a strategic shift as both nations navigate <strong>35% tariffs<\/strong> and trade threats from the Trump administration. <em>Under the USMCA, Canadian investment in Mexico has tripled over the last decade<\/em>, and Mexico recently overtook Canada as the United States&#39; top trading partner.<\/p>\n<p>Minister LeBlanc noted that the economic relationship between Canada and Mexico has <strong>multiplied twelvefold in 30 years<\/strong>, growing proportionally faster than their respective trade with the U.S. This growth is being formalized through a new <strong>Canada-Mexico Comprehensive Strategic Partnership<\/strong>, which includes joint initiatives on <strong>critical minerals and port infrastructure<\/strong>.<\/p>\n<p>As the formal USMCA review approaches this summer, the &quot;united front&quot; strategy aims to leverage the integrated nature of North American supply chains. By aligning their interests, Canada and Mexico hope to force a trilateral resolution that protects the <strong>$56 billion<\/strong> in annual trade currently flowing between the two nations.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways President Trump invoked the Defense Production Act to secure domestic supplies of elemental phosphorus and glyphosate-based herbicides, citing 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