President Donald Trump has declared a 10% increase in tariffs on Canadian imports, citing a controversial Ontario advertisement as the catalyst.
The ad, which aired over the weekend, used quotes from former President Ronald Reagan to criticize existing U.S. tariffs.
In response, Trump cancelled “all trade negotiations” with Canada, escalating tensions between the two neighboring countries.
Controversial Ontario ad sparks uproar
The advertisement, which Doug Ford, Premier of Ontario, initially promised to remove by Monday, continued running over the weekend. It even aired during the World Series game between the Toronto Blue Jays and Los Angeles Dodgers, further inflaming Trump’s frustration.
Trump posted on Truth Social: “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.”
Trump argued that the ad misrepresented Reagan’s 1987 remarks, which were originally made to oppose tariffs. He also claimed that the ad aimed to influence the U.S. Supreme Court ahead of an upcoming case that could determine presidential authority to impose broad tariffs.
Impact on U.S.-Canada trade relations
The new 10% increase in the tariff comes amid already strained trade relations between the U.S. and Canada, one of America’s closest allies and largest trading partners. Over three-quarters of Canadian exports head to the U.S., with roughly 3.6 billion Canadian dollars ($2.7 billion USD) in goods and services crossing the border daily, Sky News reports.
Current tariffs have hit many Canadian products at 35%, while steel and aluminum face 50% tariffs. Energy products carry a lower 10% rate, and goods covered under the USMCA (United States-Mexico-Canada Agreement) are generally exempt.
The trade agreement, originally negotiated by Trump during his first term, is up for review, though the former president has since expressed dissatisfaction with it.
Diplomatic fallout and upcoming ASEAN summit
Despite the tensions, Trump and Canadian Prime Minister Mark Carney are both attending the ASEAN summit in Malaysia.
However, Trump has indicated he does not plan to meet with Carney during the event, further highlighting the current strain in U.S.-Canada trade relations.