US President Donald Trump announced on Saturday an additional 10 per cent tariff on Canadian imports, further heightening trade tensions with Ottawa. Trump explicitly clarified that this new levy will be charged “above and beyond what they are paying now,” marking a significant escalation in the ongoing trade dispute.
Retaliation for the Reagan Advertisement
The decision comes just two days after President Trump ended all trade negotiations with Canada. The immediate trigger for the new tariff hike and the termination of talks was an anti-tariff advertising campaign run by the Canadian province of Ontario, which featured the voice and image of former US President Ronald Reagan.
Trump took to his Truth Social platform to announce the increase and vent his frustration:
“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 Republican leader accused Ottawa of being “caught red-handed” for putting up a “fraudulent advertisement” about Reagan’s speech on tariffs.
He cited the Ronald Reagan Presidential Foundation and Institute, which had criticized the ad, stating: “The Reagan Foundation said that they created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address and ‘did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.’”
Trump further alleged that the “sole purpose” of this “FRAUD” was “Canada’s hope that the United States Supreme Court will come to their ‘rescue’ on Tariffs that they have used for years to hurt the United States.” The US Supreme Court is scheduled to hear arguments next month on the legality of Trump’s sweeping tariff regime.
The Controversial Advertisement
The advertisement in question, which aired on US networks like Newsmax and Bloomberg, used excerpts from a 1987 radio address by former President Reagan. While Reagan was using the address to justify temporary tariffs on Japanese electronics, the ad selectively presented his general critique of protectionism.
In the one-minute commercial, Reagan is heard warning of the dangers of protectionist measures:
“High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens. Markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs.”
Canada’s Response and Trade War Context
Canadian Prime Minister Mark Carney confirmed on Friday that Canada stood ready to resume trade talks with the United States. Following Trump’s furious reaction, Ontario Premier Doug Ford announced that the province would suspend its US ad campaign effective Monday in an effort to de-escalate tensions and reopen negotiations.
The latest 10% hike adds to existing levies. Earlier this year, Trump had already imposed a 25 per cent tariff on Canadian exports and a 10 per cent tariff on energy product exports. Canada had previously retaliated by imposing counter-tariffs on $30 billion worth of US imports, including consumer goods like orange juice, peanut butter, wine, and appliances, as well as on US steel and aluminum products.