Trade tensions between the United States and Canada have centered on President Trump’s use of Section 338 authority to impose and adjust 50 percent tariffs on roughly $20 billion in Canadian goods since July 2026, following the collapse of bilateral negotiations in late August. Canada responded with matching retaliatory duties on U.S. imports effective September 8, targeting steel, aluminum, dairy, appliances, and electronics. On October 23, the administration further modified the tariff list by removing certain plywood, paper, machinery, and refrigeration items while adding valves, carpets, and other products, with changes taking effect October 30; some agricultural exemptions were also granted amid midterm pressures. Trump has stated Canada is working hard toward a deal, while Canadian officials indicate openness but willingness to wait. These ongoing scope adjustments and political timing around the November 3 midterms shape trader assessments of any near-term announcement of broader increases.