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.

The Canadian government said “in anticipation” of a trade deal “Canada would rescind” the Digital Serves Tax. The plan to tax U.S. technology firms was set to go into effect Monday.