The administration implemented Section 338 tariffs on Canadian goods, sparking a trade skirmish with Canada.

In response, Canada will apply varying tariffs on roughly $20 billion of American exports starting September 8. While these tariffs affect $40 billion of trade, they represent a small portion of the $900 billion in products and services exchanged annually between the two nations. Currently, 95% of transactions are proceeding as they did in July. However, the administration threatened to increase tariffs on many more Canadian exports, including cars, trucks, and auto parts, in January. The current tariffs apply regardless of whether products are USMCA-compliant. This means companies that invested in North American supply chains may face higher effective tariff rates than foreign competitors from China. If a trade deal is not reached by January, the administration threatened to increase auto parts from no tariff to 50% and double the tariff rate on finished cars and light-duty trucks.