U.S. President Donald Trump has announced a 10% increase in tariffs on Canadian imports, escalating trade tensions between Washington and Ottawa after accusing Canada of releasing a “fraudulent” advertisement that misused the words of former U.S. President Ronald Reagan.
In a statement posted on Truth Social Saturday, Trump said the move was a direct response to the ad, which he claimed distorted Reagan’s 1987 speech criticizing tariffs.
“Canada was caught red-handed putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs,” Trump wrote.
“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.”
The president’s decision came just two days after he announced the termination of ongoing trade talks with Canada, accusing Ottawa of “bad faith.”
The new tariffs are the latest in Trump’s aggressive trade push, following his recent 100% tariff on Chinese goods in retaliation for Beijing’s export controls on rare-earth minerals.
Trump made the post while aboard Air Force One, en route to Malaysia for a five-day diplomatic trip that will include meetings with Southeast Asian leaders and Chinese President Xi Jinping in South Korea.
The controversial ad, purchased by the Ontario government, aired on major U.S. television networks.
It featured clips from Reagan’s 1987 speech, where the former president warned that tariffs “hurt every American worker and consumer.”
The Ronald Reagan Presidential Foundation & Institute later said the ad misrepresented Reagan’s intent.
Ontario Premier Doug Ford said Friday that he had discussed the issue with Prime Minister Mark Carney, and the campaign would be paused Monday to allow for renewed trade talks.
However, the ad continued airing during the World Series, featuring the Los Angeles Dodgers and Toronto Blue Jays, further angering Trump.
“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.
Canadian Minister Dominic LeBlanc, responsible for U.S. trade relations, said in a statement that Ottawa hoped for “constructive discussions” with Washington.
“We remain focused on achieving results that benefit workers and families in both countries. Progress is best achieved through direct engagement,” LeBlanc said.
The Canadian Chamber of Commerce also reacted, calling the new tariff “a tax on American competitiveness.”
“Tariffs at any level remain a tax on America first, then North American competitiveness as a whole,” said Chamber President Candace Laing.
“A successful free trade zone is fundamental for both our economies.”
Trade experts warn that the dispute could strain the U.S.-Mexico-Canada Agreement (USMCA), which Trump negotiated in his first term.
The deal’s review is scheduled for next year, and many expect major changes amid growing protectionist policies in Washington.
The U.S. imported $411.9 billion worth of goods from Canada last year. Analysts say Trump’s tariffs on autos, steel, aluminum, lumber, and energy have already hurt Canada’s economy, pushing its unemployment rate to a nine-year high.
The measures have also triggered Canadian boycotts of U.S. products and reduced cross-border travel by 31% this year.
As Trump heads into another round of global trade negotiations, the renewed tariff war threatens to test one of North America’s most important alliances.