In a dramatic escalation of trade tensions between the United States and Canada, President Donald Trump announced on Saturday, October 25, 2025, that tariffs on Canadian goods would increase by 10 percent over the existing 35 percent rate. The move, which Trump declared via social media, came in direct response to an advertisement aired by Ontario’s provincial government. The ad featured excerpts from former President Ronald Reagan’s 1987 radio address, in which Reagan criticized tariffs and championed free trade—views that run counter to Trump’s own economic policies.
This sudden hike in tariffs has left both Canadian officials and American consumers scrambling for answers. As reported by CBC, Trump’s announcement lacked crucial details, including which specific Canadian exports would be affected and when the increase would take effect. Even aboard Air Force One on Monday, October 27, Trump admitted, “I don’t know when it’s going to kick in, and we’ll see, but I don’t really want to discuss it.”
The controversy began when Ontario launched a commercial campaign in the United States, using audio from Reagan’s 1987 address. In the speech, Reagan warned, “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.” According to Reason, the ad’s editing was standard, and all of Reagan’s words were faithfully preserved. Nonetheless, Trump took umbrage, labeling the ad “fraudulent” and accusing Canada of misrepresenting Reagan’s views for political gain.
Trump’s outrage was not limited to rhetoric. He canceled ongoing trade talks with Canada and vowed not to meet with Canadian Prime Minister Mark Carney “for a while.” Speaking to reporters, Trump argued, “Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs.” He added, “Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10 percent over and above what they are paying now.”
Ontario Premier Doug Ford responded by announcing the ad would be pulled, with the campaign officially ending on Monday, October 27. Ford said the goal of the advertisement was simple: to reach as many Americans as possible with Reagan’s message. After a conversation with Prime Minister Carney, Ford agreed to halt the ad, but by then, the diplomatic damage was done.
Trump’s reaction has drawn criticism from multiple corners. Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, posted, “To be clear, a TV commercial is about to cost American consumers about $50 billion because he’s mad.” According to Reason, this encapsulates the broader concern that the president’s unilateral authority over tariffs can have sweeping economic consequences—often based on personal grievances rather than sound policy.
The White House, for its part, characterized the Ontario ad as “the latest example of how Canadian officials would rather play games than engage with the administration.” Kevin Hassett, director of Trump’s National Economic Council, said, “The Canadians have been very difficult to negotiate with,” underscoring the administration’s frustration with what it described as months of challenging talks.
On the CBS program Face the Nation, Treasury Secretary Scott Bessent called the ad “interference in U.S. sovereign matters” and described it as “propaganda coming across our border to decry the tariffs.” However, when pressed by NBC’s Meet the Press anchor Kristen Welker for specifics on which Canadian goods would face the new tariff hike, Bessent was evasive: “I’m sure he [Trump] knows.”
At the heart of this dispute lies a fundamental disagreement over Reagan’s legacy. Trump insisted, “Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn’t!” Yet, as Reason points out, Reagan’s own words paint a different picture. In a 1985 speech, Reagan stated, “Our trade policy rests firmly on the foundation of free and open markets. I…recognize the inescapable conclusion that all of history has taught: The freer the flow of world trade, the stronger the tides for human progress and peace among nations.” Even when Reagan did impose tariffs, he admitted, “imposing such tariffs or trade barriers and restrictions of any kind are steps that I am loath to take.”
While the Trump administration has justified the new tariffs as a response to what it calls Canadian “interference,” the timing of the move is significant. The U.S. Supreme Court is set to hear oral arguments in November 2025 on the constitutionality of Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs. Several organizations—including the Cato Institute, the National Taxpayers Union Foundation, and the U.S. Chamber of Commerce—have filed amicus briefs arguing that IEEPA does not authorize the president to impose tariffs. The Cato Institute’s brief asserts, “IEEPA contains no reference to ‘tariffs’ or ‘duties,’ and no President had cited it to impose tariffs in the nearly 50 years since its enactment—until now.”
Critics argue that Trump’s actions underscore why the Founders vested tariff authority with Congress, not the president. Article I, Section 8 of the U.S. Constitution explicitly delegates the power “To lay and collect Taxes, Duties, Imposts and Excises” to Congress. Over the 20th century, however, Congress has gradually delegated more of this authority to the executive branch, most notably through the IEEPA in 1977. As the Supreme Court prepares to weigh in, the outcome could reshape the balance of power over American trade policy for years to come.
Meanwhile, uncertainty reigns in both Washington and Ottawa. Canadian officials remain unclear about which of their exports will be targeted or when the tariffs will actually take effect. As of the start of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, Trump and Carney have not spoken, and Trump has made clear he has no intention of meeting his Canadian counterpart anytime soon. “I’m very happy with the deal we have right now with Canada, and we’re going to let it run,” Trump said, without clarifying which deal he meant.
As this saga unfolds, one thing is certain: The intersection of political theatrics, personal grievances, and high-stakes economic policy has left both American consumers and Canadian exporters facing a cloud of uncertainty. With billions of dollars and the future of North American trade on the line, all eyes now turn to the Supreme Court’s impending decision—and to the next move in this ever-evolving cross-border drama.
