Trump Imposes 10% Tariff Hike on Canada Over Controversial Reagan Ad Amid Trade Tensions

U.S. President Donald Trump imposed a 10% increase in tariffs on imports from Canada, escalating tensions between the two nations. The action follows a controversial commercial, broadcast by Ontario's government during the World Series, featuring late President Ronald Reagan excoriating high tariffs. Trump labeled the commercial "fraudulent" and accused Canada of being dishonest to ruin U.S. trade policy.

The advertisement, quoting Reagan's 1987 threat of retaliatory tariffs and trade war, enraged Washington. Trump responded via his Truth Social post that the advertisement had to be pulled immediately and that it constituted a "hostile act." He stated that the new tariff hike would come in addition to existing duties.

Canadian Prime Minister Mark Carney demonstrated willingness to restart trade talks but demonstrated sensitivity to the mounting economic pressure. He said U.S. tariffs have reached Great Depression levels and called for an economic shift in Canada's approach.

The Reagan Foundation also condemned the ad as "selective audio and video," and the authorities in Ontario pledged to remove it during the weekend. Both nations remain legally bound under the USMCA trade agreement, which preserves most cross-border trade tariff-free.

The news of the tariffs comes midway through the World Series between Toronto Blue Jays of Canada and the Los Angeles Dodgers, adding a cultural twist to the economic struggle. Trump and Carney are both likely to be at the South Korean APEC summit, although no bilateral meeting has been scheduled.