US President Donald Trump announced on Saturday that he would raise tariffs on Canadian goods by 10 per cent. He said the decision came in response to a controversial ad funded by the Ontario government. The ad, according to him, misrepresented facts about trade.
This announcement came only days after Trump ended all trade discussions with Canada over the same issue.
Trump Calls Ontario Ad “Fraud”
Trump made the announcement on his social media platform, TruthSocial. He accused the Ontario government of releasing a misleading ad that quoted former US President Ronald Reagan’s speech supporting free trade. The message angered him, as it appeared to criticise US tariff policies.
“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10 per cent over and above what they are paying now,” Trump said on Saturday.
He further called the advertisement a “fraud,” adding that its “sole purpose” 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.” Trump claimed the move would help the US “defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!).”
Ontario Government to Pause US Ad Campaign
Ontario Premier Doug Ford said on Friday that the province would suspend the American ad campaign starting Monday. The decision followed discussions with Canadian Prime Minister Mark Carney. Ford also urged for trade talks between the two countries to resume soon.
What Sparked the Dispute
The controversy started with an ad sponsored by the Ontario government. The ad used excerpts from a 1987 speech by Ronald Reagan, where he said, “trade barriers hurt every American worker.”
Trump reacted strongly, saying the ad was misleading and “FAKE.” He accused Canada of trying to influence US court decisions on tariffs. “Based on their egregious behaviour, all trade negotiations with Canada are hereby terminated,” Trump wrote on TruthSocial.
Canadian Business Leaders Call for Diplomacy
Candace Laing, president of the Canadian Chamber of Commerce, responded to Trump’s move with concern. She 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.”
She added that the Canada–United States–Mexico Agreement (CUSMA) plays a vital role in promoting economic growth for all three countries. “A successful free trade zone is fundamental for both our economies,” she said.
Reagan Foundation Denounces Ontario Ad
The Ronald Reagan Presidential Foundation & Institute also criticised the Ontario ad. It said the government had not asked for or received permission to use Reagan’s clips.
In a post on X, the foundation said the advertisement used “selective audio and video” and “misrepresents” Reagan’s original comments. It added that it was “reviewing its legal options.” Trump referred to this statement in his TruthSocial post to justify his stance.
Background: Earlier Tariff Increase
It is worth noting that Trump had already increased tariffs on Canadian imports earlier this year. In July, he signed an executive order raising the tariff rate from 25 per cent to 35 per cent. Saturday’s 10 per cent hike is now an additional penalty, further straining US–Canada trade relations.