Canada is finding itself in a tricky situation after Mexico struck a deal with President Trump to delay tariffs. The agreement came in exchange for Mexico deploying more forces along its border with the U.S., leaving Canada in a tough spot as it struggles to negotiate a similar compromise.

Prime Minister Justin Trudeau spoke with President Trump on Monday morning, but no agreement was reached. A senior Canadian official close to the matter shared that the situation is still up in the air, with another call scheduled for later in the day but little hope for a quick resolution.

This split has highlighted a growing divide between Canada and Mexico, two longtime allies tied to the U.S. through a major trade agreement known as NAFTA. The updated version of this deal, the US-Mexico-Canada Agreement, was negotiated during Trump’s first term. However, tensions have risen since Trump threatened tariffs last November, blaming both countries for issues like illegal migration and fentanyl entering the U.S.

Some Canadian leaders, like Ontario’s Premier Doug Ford, even suggested the U.S. should abandon Mexico and focus on a separate deal with Canada. Their argument? Canada’s border with the U.S. sees far fewer migrants and fentanyl cases compared to Mexico’s. While Trudeau didn’t go that far, the relationship between Canada and Mexico has taken a hit, with one official saying trust between the two has “dropped to zero.”

As the situation unfolds, Canada’s trade future hangs in the balance, leaving many to wonder what’s next for its economic ties with its southern neighbors.