Trump raises tariffs on Canada by 10%

Donald Trump announced on Saturday that he will raise US tariffs on Canada by 10% in retaliation for an anti-tariff advertisement sponsored by the Ontario government, which has further strained one of the world’s largest trade partnerships.

The statement, posted on Trump’s Truth Social account, came after several days of public disputes over the ad, which referenced Ronald Reagan’s support for free trade and provoked the US president’s anger. “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 said Saturday on social media.

He further accused the ad of being a “fraud” and said the “sole purpose” of it was “Canada’s hope that the United States Supreme Court will come to their ‘rescue’ on Tariffs that they have used for years to hurt the United States”, he added. “Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!),” the president wrote.

Ontario premier Doug Ford said Friday that the province will suspend its US ad campaign on Monday, after discussions with prime minister Mark Carney, in an effort to reopen trade negotiations. The ad, which was paid for by the government of the Canadian province of Ontario, uses excerpts of a 1987 speech where Reagan says “trade barriers hurt every American worker”.

The ad aired Friday during the broadcast for Game 1 of Major League Baseball’s World Series, in which the Toronto Blue Jays faced off against the Los Angeles Dodgers. “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 posted.

Trump had previously terminated trade talks with Canada due to the ad. It was not immediately clear what goods would be affected by Trump’s announcement. The majority of Canadian exports to the US are exempt from tariffs because of the United States-Mexico-Canada Agreement (USMCA) that was signed during Trump’s first term.

The Trump administration in August imposed a 35% tariff on Canadian goods not covered by the USMCA. Canada’s economy has suffered from sector tariffs of 50% imposed this year by Trump on steel and aluminium from all countries. Candace Laing, president of the Canadian chamber of commerce, said: “tariffs at any level remain a tax on America first, then North American competitiveness as a whole. We hope this threat of escalation can be resolved through diplomatic channels and further negotiation. CUSMA [the Canada–United States–Mexico Agreement] means a North America where businesses do better. A successful free trade zone is fundamental for both our economies.”

The Ronald Reagan Presidential Foundation & Institute, a non-profit organization that works to advance his legacy and principles, wrote in a post on X that Ontario did not seek or receive permission to use the clips. The foundation said in a statement that the advert used “selective audio and video” and “misrepresents” Reagan’s comments. It said it was “reviewing its legal options”, which Trump cited in his Truth Social post.

Carney on Friday said Canada stood ready to resume trade talks with the US. Trump and Carney will both be at the Association of Southeast Asian Nations (Asean) summit in Malaysia, but the president told reporters on Air Force One he has no plans to meet with the Canadian leader.

The Canadian prime minister had previously removed most of Canada’s retaliatory tariffs on US imports imposed by his predecessor, but White House adviser Kevin Hassett said on Friday that Trump was frustrated with Canada and trade talks have not been going well.