President Donald Trump announced on Saturday he is hiking tariffs on Canadian imports by an additional 10%, a move that further escalates a trade dispute that had already led to the termination of all bilateral trade negotiations earlier this week.
The new levy, announced by the President on his Truth Social platform, is in direct response to a controversial, anti-tariff television advertisement aired in the U.S. by the government of the Canadian province of Ontario. Trump deemed the ad a “fraudulent” and “hostile act.”
The Reagan Ad Controversy
The one-minute advertisement, part of an estimated $75 million campaign by Ontario’s government, features excerpts from a 1987 radio address by former President Ronald Reagan. In the ad, Reagan is heard warning that high tariffs on imports could spark retaliation, trigger trade wars, and ultimately lead to lost jobs and shuttered businesses.
The ad’s airtime, particularly its broadcast during the highly-viewed World Series games, drew the immediate ire of President Trump, who is a staunch proponent of tariffs as an economic and national security tool.
Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,” Trump wrote. Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now.
Termination of Talks and Escalation
The tariff hike follows Trump’s decision on Thursday to terminate all trade negotiations with Canada, a direct consequence of the ad campaign. The President claimed the ad was a deliberate attempt to interfere with the U.S. Supreme Court, which is scheduled to hear arguments next month on the constitutionality of his broad tariff powers.
The Ronald Reagan Presidential Foundation and Institute also weighed in, stating the Ontario government used “selective audio and video” of the late president and did not seek or receive permission to use or edit his remarks, adding that it was reviewing its “legal options.
Canadian Response and Economic Impact
Ontario Premier Doug Ford, whose government sponsored the ad, had announced on Friday that the campaign would be suspended starting Monday in an attempt to de-escalate tensions and allow trade talks to resume. He maintained the ad had achieved its goal of reaching U.S. audiences at the “highest levels.”
Canadian Prime Minister Mark Carney has attempted to separate the provincial ad from the federal government’s trade efforts, and reiterated that Ottawa “stood ready” to resume “constructive” sector-specific talks with the U.S.
The specifics of the new 10% tariff—including which goods it will be applied to and when it will take effect—remain unclear. However, the action further strains trade relations already battered by previous U.S. levies. Canadian exports already face a 35% tariff on goods not covered by the USMCA trade agreement, with steel and aluminum facing rates of up to 50%.
The Canadian Chamber of Commerce reacted swiftly, with its president Candace Laing stating, “tariffs at any level remain a tax on America first, then North American competitiveness as a whole.” She urged both sides to seek a resolution through diplomatic channels.
President Trump and Prime Minister Carney are both scheduled to attend the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, though the President has told reporters he does not intend to meet with the Canadian leader. Click Here
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