Tempers flared across the North American border this weekend after President Donald Trump announced a new escalation in the ongoing U.S.-Canada trade dispute, unveiling plans to slap an additional 10% tariff on Canadian imports. The decision, made public on Saturday, October 25, 2025, comes in response to a controversial anti-tariff television advertisement aired by the province of Ontario, which used the words of former President Ronald Reagan to criticize U.S. tariffs.
Trump, speaking from Air Force One as he traveled to Malaysia for the Association of Southeast Asian Nations (ASEAN) summit, made his intentions clear in a post on his Truth Social platform. "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, referencing the ad's Friday night broadcast during the first game of the World Series. "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 at the center of the storm, paid for by Ontario and aired on Newsmax and Bloomberg, featured audio from Reagan’s 1987 radio address. In the spot, Reagan’s narration 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 Fox News and The New York Times, the ad was intended to spark a conversation among Americans about the economic costs of tariffs, particularly for workers and businesses on both sides of the border.
Ontario Premier Doug Ford initially defended the ad, stating, "Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses. We’ve achieved our goal, having reached U.S. audiences at the highest levels." However, following the uproar, Ford announced he would pull the ad after the weekend, allowing it to run through the first two World Series games for maximum exposure.
The reaction from the White House was swift and severe. Trump accused the ad of misrepresenting Reagan’s stance and called it a "fraudulent use" of the former president's speech. The Ronald Reagan Presidential Foundation and Institute weighed in as well, criticizing the campaign for using selective audio and video from Reagan's address without permission, and indicating they were reviewing legal options. "The ad misrepresents the Presidential Radio Address and did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter," the Foundation stated.
Trump’s move to increase tariffs adds to an already complex web of trade barriers between the two nations. Many Canadian products are currently subject to a 35% tariff, with steel and aluminum facing a hefty 50% rate. Energy products have a lower 10% tariff, and most goods covered by the U.S.-Mexico-Canada Agreement (USMCA) are exempt. However, this trade agreement—negotiated by Trump during his first term—is up for review, and relations have soured in recent months.
The Canadian response has been measured but resolute. Prime Minister Mark Carney, also en route to the ASEAN summit in Malaysia, emphasized Canada’s willingness to resume trade talks. "We stand ready to pick up on those discussions when the Americans are ready," Carney said before departing, as reported by The New York Times. He added, "For months we have stressed the importance of distinguishing things we can control and things we can’t control. We can’t control the trade policy of the United States." Carney’s office did not immediately respond to requests for comment following Trump’s latest announcement.
Canada has not been idle in the face of U.S. tariffs. Earlier this year, Ottawa imposed counter-tariffs on $30 billion worth of American goods, including everything from orange juice and peanut butter to steel, aluminum, and various consumer products. Ontario, with its heavy reliance on U.S. trade, has felt the sting particularly acutely. The province’s premier posted the full Reagan address online in an effort to demonstrate the ad’s authenticity, insisting that minor edits did not alter the substance of Reagan’s anti-tariff message.
The business community on both sides of the border has reacted with a mix of frustration and concern. Flavio Volpe, president of Canada’s Automotive Parts Manufacturers’ Association, summed up the sentiment: "This is the latest in a series of unprovoked and unwarranted escalations in tariff policy with other sovereign nations. Lost in the accountability loop here is the president’s threat is really to charge American taxpayers billions of dollars because of a benign World Series ad he doesn’t like."
Behind the scenes, negotiations between the two countries had been ongoing, with hopes of lowering tariffs on critical goods such as autos, steel, aluminum, and lumber. However, the relationship has deteriorated since Trump’s election, as both sides have imposed—and sometimes rolled back—retaliatory measures. Canada, for example, capped the number of Stellantis and General Motors vehicles made in the U.S. that can be imported tariff-free, after both companies cut jobs in Canada.
The controversy over the Ontario ad also comes at a pivotal legal moment. The U.S. Supreme Court is scheduled to hear arguments next month on the legality of Trump’s sweeping tariff powers, a case that could have far-reaching implications for U.S. trade policy. Trump, for his part, has suggested that Canada’s "fraudulent" ad campaign was designed to influence the Court’s decision. "The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their ‘rescue' on Tariffs that they have used for years to hurt the United States," Trump asserted in his social media post.
As both leaders landed in Malaysia for the ASEAN summit, the diplomatic chill was palpable. Trump told reporters he had "no intention" of meeting Carney at the event, despite both being present. Meanwhile, Carney continued to promote Canada as a reliable partner for Southeast Asia, seeking investment and stability amid the uncertainty.
While the full economic impact of Trump’s new 10% tariff remains to be seen, the episode underscores the volatility and unpredictability that have come to define U.S.-Canada relations in recent years. For now, businesses, workers, and policymakers on both sides of the border are bracing for the next twist in this high-stakes trade drama.