Trump Escalates Trade Tensions with Canada, Adds 10% Tariff After Dispute Over Reagan-Themed Ad

Trump Escalates Trade Tensions with Canada, Adds 10% Tariff After Dispute Over Reagan-Themed Ad

Washington (Rajeev Sharma): The already-strained trade relationship between the United States and Canada took a sharp downturn after President Donald Trump announced a 10% increase in tariffs on Canadian goods. The decision follows Trump’s outrage over a controversial television advertisement aired during the World Series, which he claims misrepresented former U.S. President Ronald Reagan’s stance on tariffs.

The ad — reportedly commissioned by Ontario’s provincial government — featured archival footage of Reagan that appeared to criticize protectionist trade policies. Trump, calling the commercial “deceptive and disrespectful,” accused Canada of spreading “false propaganda” to influence public sentiment in the U.S.

“Canada ran a fraudulent ad claiming President Reagan opposed tariffs. That’s a total lie. Because of this act of bad faith, I am raising tariffs on Canada by an additional 10%,” Trump wrote on Truth Social while en route to Asia aboard Air Force One.

Tariff Expansion Sparks Uncertainty

The White House has yet to release details on which Canadian industries will be impacted by the increase. Currently, several key sectors — including steel, aluminum, and agricultural exports — already face tariffs ranging from 35% to 50%. Energy products, which carry a lower 10% duty, could also be affected.

Trade experts warn that the new levy could disrupt North American supply chains and heighten inflationary pressures in both countries. “This announcement adds volatility to an already fragile trade environment,” said one analyst based in Toronto.

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The disputed commercial, which reportedly cost around $75 million, has been airing across major American networks since the World Series began. Trump insisted the ad should have been pulled before broadcast, claiming that it constitutes “a hostile act” by Canada.

He further alleged that Ottawa is seeking assistance from the U.S. Supreme Court in its trade disputes, calling the ad a “desperate attempt to gain leverage.”

“They want the Supreme Court to rescue them from tariffs they’ve been using to hurt America for years,” Trump posted on X.

Frosty Relations Between Trump and Carney

This latest escalation comes just weeks after what appeared to be productive discussions between Trump and Canadian Prime Minister Mark Carney earlier this month. However, relations quickly soured when Trump abruptly canceled a planned meeting with Carney before departing for his Asia trip on Saturday.

When pressed by reporters about whether he intended to meet the Canadian leader abroad, Trump responded bluntly: “No. I don’t plan to.”

Political and Economic Fallout

Canadian officials have not yet issued a formal statement, but sources within Ottawa have indicated deep frustration over the move, describing it as “a politically driven overreaction.” Economists suggest that Canada may consider retaliatory tariffs if the U.S. proceeds with the additional duties.

The timing of the announcement — coinciding with the final games of the World Series — has fueled speculation that Trump’s decision may also be aimed at rallying domestic support ahead of next year’s election season.

By Rajeev Sharma

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