Canada's supply management system was a sticking point in trade negotiations during Trump's first term, but withstood the U.S.-Mexico-Canada Agreement (USMCA) in 2020. By March in his second term, Trump threatened reciprocal U.S. tariffs on dairy due to what he called tremendously high Canadian tariffs.

Ottawa announced it was rescinding a tax on technology firms generating revenue from Canadians just hours before it was to take effect in an effort to move forward trade negotiations with the United States.