Trump raises tariffs on Canadian goods by 10% after Ontario ad featuring Ronald Reagan

Tariff Showdown: Trump retaliates against Canada after controversial ad featuring Reagan

October 26, 2025

US-Canada Trade Tensions: What Triggered Trump’s 10% Tariff Hike?

“Reagan Ad Sparks Trade War!” — Trump hits back with new 10% tariffs on Canada

US President Donald Trump on Saturday announced a fresh 10 percent hike in tariffs on Canadian goods, escalating tensions between Washington and Ottawa following the airing of a controversial Canadian advertisement that featured the late US President Ronald Reagan.

The announcement came just two days after Trump declared that he had terminated all trade talks with Canada, calling the ad campaign “fake” and “misleading.”

“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 on his Truth Social platform while en route to Asia for a series of high-level meetings. “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,” he added.

The ad, produced by the government of Ontario, featured excerpts from a 1987 radio address by Reagan, in which he cautioned against the economic dangers of high tariffs. The message, quoting Reagan’s warning that “high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars,” matched transcripts from the Ronald Reagan Presidential Library.

However, the Ronald Reagan Presidential Foundation criticized the use of the material, accusing Ontario officials of employing “selective audio and video” to misrepresent Reagan’s views. The foundation said it was reviewing legal options.

Ontario officials have since pledged to withdraw the ad by Monday to allow trade discussions with Washington to resume.

Trump’s latest tariff increase adds further strain to already tense US-Canada trade relations. His administration’s previous tariffs on steel, aluminum, and automobiles have already hit Canadian industries hard, resulting in job losses and rising costs.

Under the current US-Mexico-Canada Agreement (USMCA), about 85 percent of cross-border trade remains tariff-free. But Canadian Prime Minister Mark Carney warned earlier this week that US tariff levels are “the highest since the Great Depression,” urging a major overhaul of Canada’s economic strategy.

Both Trump and Carney are expected to attend a dinner on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea on Wednesday, though Trump has indicated he has no plans to meet his Canadian counterpart.

The controversy has also spilled into the sports world, as the Toronto Blue Jays — representing Canada — face the Los Angeles Dodgers in this year’s World Series. The Blue Jays defeated the Dodgers 11–4 in Friday’s opening game, adding an extra layer of symbolism to the ongoing cross-border row.

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