U.S. President Donald Trump escalates trade tensions with Canada after Ontario’s Reagan-themed anti-tariff ad sparks outrage.
Trump Announces New 10% Tariff Increase on Canadian Goods
In a fresh escalation of the U.S.-Canada trade dispute, President Donald Trump has announced an additional 10 percent tariff on Canadian imports following what he called a “fake and hostile” advertisement aired by the Ontario provincial government.
The ad, which featured a 1980s speech by former U.S. President Ronald Reagan criticizing tariffs, was broadcast during Game 1 of the MLB World Series between the Toronto Blue Jays and the Los Angeles Dodgers. Trump blasted the spot as a misrepresentation of Reagan’s views and accused Ontario officials of interfering in U.S. policy debates.
“Their advertisement was to be taken down immediately, but they let it run last night during the World Series, knowing it was a fraud,” Trump posted on Truth Social while en route to Malaysia aboard Air Force One.
“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 White House has yet to clarify which Canadian goods will be affected by the new tariffs, though they are expected to target products not covered under the United States-Mexico-Canada Agreement (USMCA).
Background: Reagan Ad Sparks Diplomatic Fallout
The controversial advertisement, funded by Ontario Premier Doug Ford’s government, featured Reagan warning that tariffs “lead to trade wars and economic disaster.” Though the quotes were genuine, Al Jazeera’s review of the original Reagan speech found that the ad rearranged some sentences for dramatic effect.
U.S. officials quickly accused Ontario of manipulating Reagan’s legacy to undermine current American policy and influence a pending U.S. Supreme Court case involving Trump’s tariff powers.
The dispute led to Trump suspending trade talks with Canada earlier this week, declaring that “no discussions can continue under such dishonest circumstances.”
Canada’s Response and Ford’s Damage Control
Premier Doug Ford responded Friday, announcing that Ontario would pause the ad campaign after the weekend to defuse tensions and allow trade negotiations to resume.
“Our intention was to start a conversation about tariffs and their impact on workers and businesses,” Ford said on X (formerly Twitter).
“We’ve achieved our goal, having reached U.S. audiences at the highest levels.”
Despite Ford’s concession, Trump proceeded with his new tariff order on Saturday, citing “ongoing bad faith” from Canadian officials.
Prime Minister Mark Carney has said that Canada remains open to resuming trade talks, urging Washington to de-escalate. However, Trump told reporters he has no plans to meet Carney during the ongoing ASEAN Summit in Malaysia.
Impact on U.S.-Canada Trade Relations
The latest tariff hike further strains economic relations between the two allies. In August, Trump’s administration imposed a 35% tariff on Canadian goods outside USMCA protections, adding to earlier 50% sector-specific tariffs on steel and aluminum.
Economists warn that the cumulative impact could undermine North American supply chains, particularly in the automotive, construction, and manufacturing industries.
Canada remains one of America’s largest trading partners, with more than $700 billion in bilateral trade annually, but the repeated tariff disputes have already dampened investor confidence.
Reagan’s Legacy Reignited in Modern Trade Wars
The use of Reagan’s image has drawn mixed reactions within the U.S. Republican Party. Some conservative lawmakers defended Trump’s stance, saying the ad “weaponized Reagan’s words.” Others argued that Reagan’s original free-trade message still holds relevance today.
Political analysts say the controversy underscores Trump’s ongoing effort to frame himself as Reagan’s successor in conservative economic nationalism, despite their differing trade philosophies.
Uncertain Future for Trade Talks
With the World Series broadcast continuing over the weekend, it remains unclear whether Ontario’s Reagan ad will air again. Ford had previously suggested it might appear during Game 2, though Trump’s tariff retaliation could prompt Canadian authorities to pull it entirely.
Meanwhile, both countries’ trade teams have been instructed to suspend all dialogue until further notice, raising fears of another North American trade standoff similar to the 2018 steel dispute.
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