Trump Announces 10% Tariff Increase on Canadian Goods Amidst Trade Tensions

Sun Oct 26 2025 23:45:36 GMT+0200 (Eastern European Standard Time)

Donald Trump has declared a 10% increase in tariffs on Canadian imports following the airing of a controversial advertisement featuring Ronald Reagan, intensifying trade tensions between the two countries.

In a bold move, President Donald Trump has increased tariffs on goods imported from Canada by 10%. This decision came after Ontario aired an anti-tariff advertisement featuring former President Ronald Reagan, which Trump labeled as a 'fraud.' Prime Minister Jay Carney of Canada expressed a willingness to resume trade discussions, despite ongoing tensions and previous tariff impositions. The situation highlights the fragile state of US-Canada trade relations as both nations navigate increasingly complex issues.

Donald Trump has announced a significant escalation in trade tensions with Canada by adding a 10% tariff on goods imported from the country. The decision follows an anti-tariff advertisement aired by Ontario that features Ronald Reagan, which Trump described as a fraudulent representation.

The advertisement has sparked controversy, leading Trump to criticize Canadian officials for not pulling it ahead of the World Series championship, where it was featured during broadcasts. In response, Ontario's Prime Minister Jay Carney indicated that Canada remains ready to continue trade discussions but is also exploring partnerships with other nations.

Since Trump initiated the process of levying substantial tariffs on major trading partners, Canada stands out as the only G7 country that has yet to reach a trade agreement with the US. The US already imposes a 35% tariff on most Canadian goods, with specific sectors like metals and automobiles facing even steeper tariffs of 50% and 25%, respectively.

Trump confirmed the increase while traveling to Asia, stating, I'm increasing the Tariff on Canada by 10% over and above what they are paying now. The burden of tariffs typically falls on the importing firms rather than exporters, impacting the cost of Canadian goods in the US market.

As Ontario is a crucial hub for Canadian exports, particularly in the automobile sector, the implications of these tariffs are significant. Prime Minister Carney reiterated Canada's commitment to negotiating with the US to secure favorable outcomes for Canadian workers and families.

While Trump has dismissed the possibility of meeting with his Canadian counterpart during his trip to Malaysia, discussions around this tariff threat continue. Canada's trade minister expressed optimism about constructive dialogue, emphasizing the importance of maintaining open channels with the US administration.

The fallout from the advertisement led Ontario Premier Doug Ford to pause the anti-tariff campaign; however, it continued to air in conjunction with the World Series, prompting Trump's criticism that it should have been removed immediately.

Officials from the Reagan Foundation criticized the advertisement for using selective footage and stated that the Ontario government failed to seek permission for its content. The ad presents Reagan's stance against tariffs, rabbiing it as a political tool in the escalating trade dispute.

The Canadian Chamber of Commerce has expressed concern regarding this tariff threat and advocates for resolution through diplomatic avenues. The ongoing exchanges highlight how both countries are trying to balance trade relations amidst rising tensions.