Trump Escalates Trade War with Canada: 10% Tariff Hike Follows Fury Over Reagan Ad
In a sharp escalation of tensions, U.S. President Donald Trump announced on Saturday an additional 10 percent tariff on imports from Canada, intensifying a dispute sparked by a provincial advertisement that invoked the legacy of former President Ronald Reagan.
The move arrives just two days after Trump declared an end to all ongoing trade negotiations with Canada, dismissing the ad as fraudulent and deceptive. Posting from his Truth Social account en route to Asia for diplomatic engagements, Trump lambasted the campaign: “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.” He justified the tariff increase as a direct response to “their serious misrepresentation of the facts, and hostile act,” layering it atop existing duties.
The contentious spot, produced by the government of Ontario, drew from a 1987 radio address by Reagan, where he cautioned against the perils of steep tariffs on foreign goods. The ad highlighted Reagan’s words that “high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars,” a line corroborated by the transcript archived on the Ronald Reagan Presidential Library’s website. However, the Ronald Reagan Foundation criticized the Ontario authorities on X for employing “selective audio and video,” and announced it was exploring legal recourse. In response, Ontario officials committed to withdrawing the ad by Monday to pave the way for resumed discussions.
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Trump’s broader array of sector-specific tariffs—targeting steel, aluminum, and automobiles—has already inflicted significant pain on Canadian industries, resulting in widespread layoffs and financial strain for companies reliant on cross-border commerce. Despite the friction, the United States and Canada continue to operate under the United States-Mexico-Canada Agreement (USMCA), which keeps approximately 85 percent of bilateral trade duty-free.
The rift has prompted stark warnings from Canadian Prime Minister Mark Carney, who, in a Wednesday address, likened U.S. tariff levels to those of the Great Depression era. “Our economic strategy needs to change dramatically,” Carney stated, acknowledging that adaptation “will take some sacrifices and some time.”
With both leaders slated to attend a peripheral dinner at the Asia-Pacific Economic Cooperation summit in South Korea this week, opportunities for dialogue loom—though Trump has signaled no intention of a sit-down with Carney. The feud coincides with heightened nationalistic fervor, as the Toronto Blue Jays of Canada routed the Los Angeles Dodgers 11-4 in Game 1 of the World Series on Friday, injecting a layer of sporting rivalry into the economic standoff.