Trump raises tariffs on Canada by 10% over Ontario's Reagan ad

United States President Donald Trump announced on Sunday that he is imposing an additional 10% tariff on Canada and on Thursday declared the termination of “all trade negotiations” with the country, following a $75 million television advertisement produced by Ontario’s provincial government criticizing U.S. tariffs. The ad, which aired during the MLB playoffs, featured authentic audio from Ronald Reagan’s 1987 radio address warning against tariffs.

The additional 10% tariff means that the new levy is added on top of existing tariffs . For example, products already subject to a 35% tariff would now face 45%, steel and aluminum at 50% would rise to 60%, and energy products at 10% would increase to 20%. This effectively makes Canadian goods more expensive in the U.S. market and increases pressure on Canada in trade negotiations.

Trump, writing on Truth Social while aboard Air Force One, condemned the ad as “fake,” claiming it misrepresented Reagan’s views and accusing Canada of attempting to influence an American Supreme Court case. He stated: “Canada thinks it can pressure American courts and public opinion with propaganda ads. Totally unacceptable. We will not be lectured by anyone while we protect American jobs. I am hereby ending all trade negotiations with Canada until they learn to treat the United States with respect. America First means standing up to unfair partners, even our neighbors.”

The Ontario advertisement aimed to protect the province’s auto and manufacturing sectors from proposed 25% U.S. tariffs. Featuring a female narrator, it emphasized that Reagan believed tariffs “hurt businesses and consumers” and “stifle economic growth,” implying that even a Republican icon would disapprove of Trump’s trade policies. The ad first aired in the U.S. on October 14, 2025, and again on October 21, prior to any major U.S. protests against Trump’s tariff policies, highlighting that Trump’s reaction was primarily in response to the ad itself.

Observers note that Trump is leveraging the controversy strategically, presenting himself as tough on trade while portraying the Canadian ad as interference in U.S. affairs. Meanwhile, the $75 million expenditure by Ontario is viewed as a calculated investment to influence U.S. voters and policymakers, signaling the political and economic costs of tariffs.

Ontario Premier Doug Ford defended the ad, stating it used a public domain speech excerpt to highlight the risks of U.S. tariffs. Canadian Prime Minister Mark Carney indicated that Canada plans to expand exports to non-U.S. markets to offset uncertainty caused by Trump’s trade policies.

Earlier, Trump had refused to meet Carney just before departing the White House for a trip to Asia, stating, “No, I don't have any plan to.” This escalation comes weeks after Trump and Carney met on October 7 to discuss trade, border security, and ongoing negotiations, which Trump had described as “complicated, more complicated than maybe any other agreement we have on trade,” citing a mix of “natural conflict” and “mutual love” between the neighboring nations.

The Ronald Reagan Presidential Foundation also criticized the advertisement for using Reagan’s speech without permission. Trump, who often praises Reagan as a personal and political model, emphasized economic nationalism and toughness in trade in his response, selectively interpreting Reagan’s legacy in line with his own policies.