Trump Hits Canada With Extra 10% Tariff After Reagan Ad Controversy

US President Donald Trump on Saturday announced an additional 10 per cent tariff on imports from Canada, escalating trade tensions between Washington and Ottawa. Trump clarified that this new duty will be applied on top of the existing tariffs already in place for Canadian goods.

The decision came just days after Trump ended trade discussions with Canada, accusing the country of misrepresenting former US President Ronald Reagan in an anti-tariff advertisement.

"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 wrote on his Truth Social platform, referring to the controversial ad.

According to Trump, Ottawa was "caught red-handed" running a "fraudulent advertisement" using selective clips from Reagan's speech on tariffs. The Ronald Reagan Presidential Foundation and Institute later confirmed it was reviewing legal options, stating that the ad "used selective audio and video" from Reagan's 1987 radio address without permission, altering his original intent.

"The sole purpose of this fraud 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 added.

Canadian Prime Minister Mark Carney said on Friday that Canada remained open to resuming trade negotiations with the United States despite the new tariffs.

Earlier this year, Trump had already imposed a 25 per cent tariff on Canadian exports and a 10 per cent tariff on energy product exports from Canada. In retaliation, Canada imposed counter-tariffs on $30 billion worth of American goods, including orange juice, peanut butter, wine, spirits, beer, coffee, apparel, appliances, and other consumer products.

Following the US tariffs on steel and aluminium, Canada also implemented a 25 per cent tariff on American steel and aluminium products, as well as on tools, servers, computers, display monitors, sports equipment, and cast-iron goods.

The Reagan Advertisement Controversy

The dispute intensified after an Ontario-based anti-tariff advertisement used excerpts from Ronald Reagan's 1987 radio address on trade disputes with Japan. The one-minute ad implied Reagan opposed tariffs and featured his remarks out of context.

In the ad, Reagan warns, "High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens. Markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs."

The advertisement aired on Newsmax and Bloomberg, drawing criticism from Trump, who denounced it as deceptive and disrespectful to Reagan's legacy.