US President Donald Trump announced on Saturday a further 10 per cent increase in tariffs on Canadian goods, escalating tensions sparked by a Canadian anti-tariff advertisement that featured late US President Ronald Reagan.
The move came two days after Trump said he had ended all trade talks with Canada, accusing the country of running a “fake” ad campaign.
Posting on his Truth Social platform while en route to Asia for meetings with regional leaders, Trump wrote:
“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. 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.”
The controversial advertisement, produced by the government of Ontario, quoted Reagan’s 1987 radio address warning against the dangers of high tariffs on foreign imports. It cited the former president as saying, “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars,” a line that appears in the official transcript on the Ronald Reagan Presidential Library’s website.
The Ronald Reagan Foundation criticised the ad on Thursday via X (formerly Twitter), accusing Ontario of using “selective audio and video” and stating it was reviewing potential legal action. In response, Ontario announced plans to withdraw the advert on Monday to allow trade discussions to resume.
Trump’s global tariffs, particularly on steel, aluminium, and automobiles, have already had a significant impact on Canada, resulting in job losses and mounting pressure on industries.
Currently, both nations operate under the United States–Mexico–Canada Agreement (USMCA), which maintains tariff-free trade on approximately 85 per cent of goods exchanged across their borders.
However, Canadian Prime Minister Mark Carney said on Wednesday that the United States had raised its tariffs “to levels last seen during the Great Depression.” He added, “Our economic strategy needs to change dramatically. The process will take some sacrifices and some time.”
Both leaders are expected to attend a dinner on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea on Wednesday, although Trump has ruled out meeting Carney.
Adding to the diplomatic tension, the ongoing World Series features a Canadian team — the Toronto Blue Jays — taking on the Los Angeles Dodgers. The Blue Jays opened the series with an emphatic 11–4 victory on Friday.