The United States has announced a fresh escalation in its trade dispute with Canada, with President Donald Trump declaring a 10 per cent increase in tariffs on Canadian goods. The move, revealed on Saturday through a post on his Truth Social account, comes in direct response to an advertisement sponsored by the Ontario government which criticised American tariff policy and invoked the legacy of former president Ronald Reagan.
The advertisement, which aired during the broadcast of Game One of Major League Baseball’s World Series between the Toronto Blue Jays and the Los Angeles Dodgers, featured excerpts from a 1987 Reagan speech in which he warned that “trade barriers hurt every American worker”. The campaign, funded by Ontario’s provincial government, was intended to highlight the benefits of free trade. However, it provoked a furious reaction from Washington.
In his statement, Trump accused the advert of being a “fraud” and claimed its “sole purpose” was to encourage the United States Supreme Court to intervene on Canada’s behalf in ongoing tariff disputes. “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 wrote. He added that the United States was now “able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!)”.
The announcement marks a further deterioration in one of the world’s largest trading relationships. Ontario’s premier, Doug Ford, said on Friday that the province would suspend its advertising campaign in the United States from Monday, following discussions with Canada’s prime minister, Mark Carney. The decision was presented as an attempt to ease tensions and reopen negotiations with Washington.
Trade talks between the two countries had already been suspended earlier in the week after Mr Trump objected to the advert. White House adviser Kevin Hassett confirmed on Friday that discussions had been faltering, describing the president as “frustrated” with Canada’s approach.
The precise scope of the new tariffs has not yet been clarified. Most Canadian exports to the United States are exempt from duties under the United States–Mexico–Canada Agreement (USMCA), signed during Mr Trump’s first term. However, in August his administration imposed a 35 per cent tariff on Canadian goods not covered by the pact. In addition, tariffs of 50 per cent on steel and aluminium imports from all countries have already inflicted significant damage on Canada’s industrial sector.
Business leaders on both sides of the border have expressed concern at the latest escalation. Candace Laing, president of the Canadian Chamber of Commerce, warned that “tariffs at any level remain a tax on America first, then North American competitiveness as a whole”. She urged both governments to resolve the dispute through diplomacy, stressing that the USMCA framework was designed to ensure that “a successful free trade zone is fundamental for both our economies”.
The controversy has also drawn in the Ronald Reagan Presidential Foundation & Institute, which criticised Ontario’s use of the late president’s words. In a statement posted on X, the foundation said the advert employed “selective audio and video” and “misrepresents” Reagan’s comments. It added that Ontario had not sought or received permission to use the clips and that it was “reviewing its legal options”. Mr Trump cited the foundation’s objections in his own remarks.
Prime Minister Carney has said Canada remains ready to resume trade talks with the United States. Both leaders are due to attend the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, though Mr Trump told reporters aboard Air Force One that he had no plans to meet his Canadian counterpart.
The Canadian government has previously sought to ease tensions by removing most retaliatory tariffs on American imports, which had been imposed by Mr Carney’s predecessor. However, with Washington now signalling a further hardening of its stance, the prospects for a swift resolution appear uncertain.
