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27 October 2025

Trump Hits Canada With New Tariffs After Reagan Ad

A controversial Ontario ad quoting Reagan’s anti-tariff warning triggers a 10% tariff hike from Trump, deepening U.S.-Canada trade tensions as leaders brace for a high-stakes summit.

Trade tensions between the United States and Canada have erupted once again, but this time the spark wasn’t steel or dairy—it was a television commercial. The latest diplomatic spat began when Ontario’s provincial government aired a commercial during the opening games of the World Series between the Toronto Blue Jays and the Los Angeles Dodgers. The ad, which featured audio from a 1987 speech by former U.S. President Ronald Reagan warning about the dangers of protectionism, was meant to highlight the risks of tariffs. Yet, it quickly became the flashpoint for a transnational controversy that has spiraled into economic retaliation and a war of words at the highest levels of government.

On October 24, 2025, President Donald Trump took to his Truth Social platform, posting from Air Force One en route to Asia, and declared an immediate end to all trade talks with Canada. He accused the Canadian side of orchestrating what he called a “fake” publicity campaign. "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. The following day, he doubled down, announcing a 10% tariff increase on all Canadian imports, citing what he described as the ad’s "serious misrepresentation of the facts, and hostile act." According to Kazinform News Agency, Trump’s statement was unequivocal: "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."

The ad itself drew directly from Reagan’s 1987 remarks, in which the former president cautioned that "high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars." This line, taken from the official transcript at the Ronald Reagan Presidential Library, was at the heart of Ontario’s message. However, the Ronald Reagan Presidential Foundation and Institute was quick to respond. On October 23, the Foundation posted on social media, accusing Ontario of using "selective audio and video" and warned it was assessing potential legal action. The Foundation’s statement, which some saw as aligning Reagan’s free-trade legacy with Trump’s protectionist policies, fueled further debate.

According to El Economista, the Reagan Foundation asserted it had not approved the use or editing of the Reagan clips for the ad. The Foundation’s intervention was unusual and sparked a volatile mix of blowback and praise. Critics on social media, including Dartmouth College economist Paul Novosad, argued that anyone listening to Reagan’s full remarks would see he "says exactly what the Ontario ad claims." Jason Kenney, a former Canadian cabinet minister, accused the Foundation of being "easily intimidated by a call from the White House." Trump supporters, meanwhile, echoed the president’s accusations, framing the ad as interference in U.S. politics.

The timing of the ad’s broadcast—during the World Series, with the Toronto Blue Jays in the spotlight—amplified its impact. Ontario Premier Doug Ford initially defended the commercial, but as the controversy escalated, he announced plans to withdraw it after the weekend. "The ad would be phased out so the U.S. and Canadian administrations can resume trade talks," Ford said on October 24, though he allowed it to air during the first two games. Ford’s decision came too late for Trump, who had already ordered the new tariffs before departing for Asia to attend the ASEAN summit.

The economic fallout from Trump’s global tariff strategy has been significant for Canada. Tariffs on steel and aluminum have reached as high as 50%, with many Canadian products facing steep duties. According to BORNA, these measures have contributed to job losses and financial strain for Canadian industries. Despite the escalation, both nations remain bound by the United States-Mexico-Canada Agreement (USMCA), which keeps about 85% of their bilateral trade duty-free. Still, the threat of a broader trade war looms large, as Canadian officials warn of deeper repercussions if protectionist policies persist.

Canadian Prime Minister Mark Carney addressed the situation on October 22, warning that U.S. tariffs have risen "to levels last seen during the Great Depression." He acknowledged the need for a dramatic change in Canada’s economic strategy, stating, "Our economic strategy needs to change dramatically. It will take some sacrifices and some time." Carney’s comments reflect growing anxiety in Canada, where more than three-quarters of exports are destined for the U.S., and nearly $2.7 billion in goods and services cross the border every day.

Meanwhile, Canadian Prime Minister Dominic LeBlanc emphasized his government’s commitment to a stable trade relationship. He described ongoing discussions with Washington as "constructive" and stressed that "progress comes through direct engagement and not public disputes." LeBlanc’s measured tone stood in stark contrast to the heated rhetoric coming from the White House, but it did little to stem the tide of escalating tariffs.

The controversy has also highlighted the deep divisions within the American political landscape. The Reagan Foundation’s stance—criticizing the Ontario ad while also being accused of siding with Trump—sparked debates about Reagan’s true legacy. Was Reagan’s warning against tariffs being weaponized for political gain? Or was the ad merely a reminder of the dangers of protectionism that Reagan himself had articulated?

Adding another layer to the drama, Trump accused the Ontario ad of being an attempt to influence the U.S. Supreme Court ahead of arguments next month concerning his authority to impose sweeping tariffs. Lower courts have previously ruled that Trump exceeded his powers, and the Supreme Court’s decision could have far-reaching implications for future trade policy.

As both Trump and Carney prepared to attend the Asia-Pacific Economic Cooperation (APEC) summit in South Korea on October 29, the diplomatic chill was palpable. Trump made it clear he had "no plans" to meet Carney during the event, signaling a continued freeze in U.S.-Canada relations. The new tariffs, announced with little warning, marked a sharp turn just weeks after signs of improvement in the bilateral relationship.

For now, the baseball rivalry between the Blue Jays and Dodgers has spilled over into the political and economic arenas, with both sides digging in for what could be a prolonged standoff. The Ontario ad may have been pulled, but the questions it raised—about trade, protectionism, and the use of political icons—are likely to linger well beyond this World Series.

As the dust settles, the fate of U.S.-Canada trade hangs in the balance, with both nations watching closely to see if dialogue can resume or if this latest spat will harden into a new era of economic confrontation.