US President Donald Trump announced Saturday a 10% increase in tariffs on Canadian goods, escalating trade tensions with America’s northern neighbor, CNN reported.
The move follows what Trump called a “fraudulent” advertisement aired by the Ontario government that misrepresented former President Ronald Reagan’s stance on tariffs.
“Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs,” Trump posted on his Truth Social platform. “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 ad, broadcast on major US networks, quoted Reagan criticizing tariffs as harmful to American workers and consumers. The Ronald Reagan Presidential Foundation & Institute condemned the ad, saying it distorted Reagan’s message.
Trump’s announcement came just days after he terminated trade talks with Canada, accusing the country of undermining his economic agenda. The president posted the tariff hike while aboard Air Force One en route to Asia, where he will meet with Southeast Asian leaders and Chinese President Xi Jinping.
Ontario Premier Doug Ford said Friday the ad campaign would pause Monday to allow trade talks to resume. However, Trump criticized the decision to let the ad run during the World Series, being played between the Toronto Blue Jays and the Los Angeles Dodgers, calling it a “hostile act.”
“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 wrote.
Canada, America’s second-largest trading partner, exported $411.9 billion in goods to the US last year. Trump’s tariffs on key Canadian exports-autos, steel, aluminum, lumber, and energy-have driven Canada’s unemployment rate to a nine-year high.
The economic fallout is also affecting the US According to Statistics Canada, Canadian travel to the US by land is down 31% this year, and American spirit exports to Canada plunged 85% in Q2.