Previously, Canadian imports outside the U.S.-Mexico-Canada Agreement (USMCA) faced 25% tariffs, while energy imports were subjected to 10%. Canada is the United States' second-largest trading partner,

Trump threatened to escalate tariffs beyond 35% if Canada opts to retaliate with tariffs on U.S. goods. Canadian goods are also subject to sector-specific tariffs, such as 50% levies on steel and aluminum as well as 25% tariffs on non-USMCA compliant autos and auto parts.