LDL. CONTINENTAL REVOLT: Mexico & Canada FORM NEW POWER BLOC — Outsmarting Trump AND Leaving the U.S. ISOLATED in Its Own Hemisphere.

In a stunning geopolitical shift, Mexico and Canada are forging a new trade corridor that could redefine North America’s economic landscape, effectively bypassing the United States. This bold move comes on the heels of President Donald Trump’s recent announcement extending tariffs on Mexican goods for an additional 90 days, which has been celebrated by Mexican President Claudia Sheinbaum as a significant victory for her country.

The proposed trade route, dubbed the Northern Corridor Free Trade Series, is designed to facilitate the movement of over $100 billion worth of goods—ranging from steel to automotive parts—between Canada and Mexico without passing through U.S. territory. This initiative represents a seismic shift away from a U.S.-centric trade model that has dominated the continent for decades. As Canada and Mexico seek to create a self-sufficient economic system, they are laying the groundwork for a trade relationship that operates independently of American control.

Historically, the U.S. has been the linchpin of North American trade, with significant logistical advantages stemming from control over key customs points and transportation routes. However, the imposition of a sweeping 30% tariff on steel and auto parts by President Trump has prompted both Canada and Mexico to reassess their reliance on U.S. trade infrastructure. What began as frustration over tariffs has morphed into a strategic plan to construct a new trade network that circumvents U.S. borders entirely.

The implications of this shift are profound. Analysts predict that the diversion of goods away from U.S. ports could result in a staggering $120 billion loss to the American economy over the next two years. This figure encompasses not only the direct loss of trade revenue but also the economic fallout from reduced logistics activities, job losses, and diminished tax revenues. The Midwest, already vulnerable to manufacturing slowdowns, stands to be hit particularly hard, with trade routing draining nearly 3% of the region’s total economic activity.

The Northern Corridor’s infrastructure is already taking shape, with Canadian ports like Prince Robert being repurposed to facilitate trade directly with Mexican factories. This corridor will connect Canadian resources—such as steel and lithium battery components—with Mexican manufacturing hubs, thereby streamlining the supply chain and significantly reducing transportation costs. The cost of moving goods through this new corridor is projected to be substantially lower than traditional U.S. routes, creating a permanent incentive for businesses to shift their logistics strategies.

Moreover, the energy landscape is also undergoing a transformation. Canada’s new liquefied natural gas terminal is set to redirect supplies to Mexican industrial plants, further diminishing the U.S.’s role as a key energy supplier to its neighbors. California, in particular, may experience rising electricity costs as these energy flows are altered.

As both nations solidify their trade partnership, the potential for further economic isolation of the U.S. looms large. The groundwork for this corridor is being laid with binding agreements and advanced digital customs platforms, making it increasingly difficult for the U.S. to reclaim its previous dominance in North American trade. The expectation is that by September, the partnership will be formalized, locking in a new economic reality that could see the U.S. losing out on an estimated cumulative $245 billion over five years.

The urgency of this situation cannot be overstated. As the U.S. grapples with its own internal trade policies and the ramifications of tariffs, the question remains: how will Washington respond to this significant shift in power dynamics? With the emergence of the Northern Corridor, the U.S. risks being sidelined in a trade landscape that is evolving rapidly and decisively. The next few months will be critical in determining whether the U.S. can adapt to this new reality or if it will be left behind as Canada and Mexico chart a new course for economic collaboration.