U.S. raises Canadian tariffs by 10% after row over Reagan ad

President Donald Trump announced on Saturday plans to impose an extra 10% tariff on Canadian imports following a television advertisement aired by Ontario that used edited clips of former President Ronald Reagan to criticise U.S. tariffs.

The advert, which aired Friday night during the first game of the World Series, criticised U.S. trade policies using Reagan’s 1987 radio address. Trump said the Ronald Reagan Presidential Foundation and Institute confirmed the ad “misrepresents the Presidential Radio Address” and that permission for its use had not been granted. The foundation added that it was “reviewing its legal options.”

Trump condemned the advert as a “serious misrepresentation” intended to sway the U.S. Supreme Court ahead of a key hearing on his authority to impose tariffs. He wrote 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.”

It remains unclear what legal authority Trump will use to implement the additional import taxes or when they will take effect. The White House has not commented on the scope or timeline of the increase.

Trade tensions and economic impact

Canada’s economy has already been hit hard by existing U.S. tariffs. Many Canadian exports face 35% duties, while steel and aluminium are taxed at 50%. Energy exports are subject to lower rates of around 10%, while most products compliant with the United States–Mexico–Canada Agreement (USMCA) remain duty-free.

Trump and Canadian Prime Minister Mark Carney are both due to attend the ASEAN Summit in Malaysia this week, but Trump said he has no plans to meet his counterpart there.

Economists warn that maintaining or expanding tariffs could further strain North America’s supply chains. Steel and aluminium are essential for industries including car manufacturing, construction, and home appliances — meaning higher costs for U.S. consumers are likely.

In June, Trump suspended talks with Canada over a proposed Digital Services Tax targeting U.S. tech firms, which Ottawa later scrapped under Washington’s pressure. With trade negotiations now frozen, analysts expect current tariffs to remain in place for the foreseeable future.

Last year, the U.S. ran a $63 billion trade deficit with Canada, according to the Office of the U.S. Trade Representative. Canada remains America’s second-largest trading partner, with about three-quarters of its exports headed south of the border.

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