09:09 AM EDT, 07/04/2024 (MT Newswires) -- This is a time of increasing nervousness over global trade -- examples include United States tariffs on China, European Union tariffs on China, China anti-dumping investigations of various EU products, and so on, noted Bank of Montreal (BMO).

The fact that the U.S., Canada and Mexico trade pact (USMCA) will be undergoing a joint review in January 2026 isn't lost on anyone, particularly given recent protectionist actions, said the bank.

It might not be a good time to point out that the U.S. trade deficit with Mexico deteriorated to a record $159 billion in the year to May. This may reflect some goods from China going through Mexico with

minimal changes, stated BMO.

Think of it as a pitstop en route to their ultimate destination: the US, added the bank.

BMO expected the policy review to include more measures to address this backdoor.