In a dramatic escalation of trade tensions, President Donald Trump announced on October 25, 2025, that the United States would hit Canadian imports with an additional 10% tariff. The move came in direct response to an anti-tariff television advertisement aired by the province of Ontario, which used the words of former President Ronald Reagan to criticize U.S. tariffs. The ad, which aired during the high-profile first game of the World Series between the Toronto Blue Jays and Los Angeles Dodgers, quickly became the flashpoint for a diplomatic standoff that has left trade talks between the two countries in tatters.
According to the Associated Press, Trump made the announcement while flying aboard Air Force One to Malaysia for the Association of Southeast Asian Nations (ASEAN) summit. He took to his Truth Social platform to air his grievances, writing, “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.” He continued, “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 advertisement at the heart of the dispute featured a video clip from a 1980s Reagan speech in which the former Republican icon warned that tariffs could spark trade wars and economic disaster. Ontario Premier Doug Ford, whose government sponsored the ad, initially defended the campaign, insisting its purpose was to “initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses.” Ford said, “We’ve achieved our goal, having reached U.S. audiences at the highest levels.”
Ford later announced on X (formerly Twitter) that he would pull the advertisement after the weekend, following consultations with Canadian Prime Minister Mark Carney. “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 US audiences at the highest levels,” Ford reiterated. He instructed his team to continue airing the commercial during the first two World Series games, but agreed to pause the campaign effective Monday, October 27, 2025, in hopes of resuming trade talks.
Despite Ford’s concession, Trump was unswayed. In a statement to reporters, he called the ad “crooked” and accused Ontario of “dirty play.” Trump declared, “Well, that’s dirty play -- but I can play dirtier than they can, you know.” He also accused the ad of being an attempt to influence an upcoming U.S. Supreme Court hearing on his authority to impose sweeping tariffs, a key element of his economic policy.
The U.S. administration’s frustration with Canada has been simmering for months. White House officials told Al Jazeera that the ad was “the latest example of how Canadian officials would rather play games than engage with the Administration.” Kevin Hassett, director of the National Economic Council, cited Canada’s “lack of flexibility” and “leftover behaviors from the Trudeau folks,” referencing the frosty relationship between Trump and former Prime Minister Justin Trudeau. Hassett suggested that the dispute was not just about one ad, but about a broader pattern of Canadian resistance in trade negotiations.
The fallout from Trump’s tariffs has been acutely felt in Canada, especially in Ontario’s auto sector. According to AP and Al Jazeera, Trump has previously imposed a 35% tariff on Canadian goods not covered by the United States-Mexico-Canada Agreement (USMCA), and a 50% tariff on steel and aluminum from all countries. Canada’s government retaliated with levies on certain U.S. goods, but carved out exemptions for some automakers. In October 2025, auto giant Stellantis announced it would move a production line from Ontario to Illinois, a direct blow to the province’s economy.
Canadian Prime Minister Mark Carney, for his part, has tried to strike a conciliatory tone. Speaking before departing for the ASEAN summit, Carney said, “We can’t control the trade policy of the United States. We recognize that that policy has fundamentally changed from the 1980s.” He emphasized that Canada remains ready to continue talks to reduce tariffs in certain sectors, but acknowledged the challenges posed by Trump’s hardline stance.
The controversy over the Ontario ad drew in yet another American institution: the Ronald Reagan Presidential Foundation and Institute. The foundation posted on X that the ad “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It further stated that Ontario did not receive permission to use or edit Reagan’s remarks and that legal options were being reviewed. The foundation’s board includes prominent Republicans and free-market advocates, some of whom have clashed with Trump’s protectionist policies in the past.
Ontario’s ad campaign was ambitious and costly, with a price tag of approximately $54 million USD, according to AP. The spot aired across 198 of America’s 210 media markets in October 2025, with the highest frequency in New York and Washington, D.C. The campaign’s reach was undeniable, but its impact on U.S.-Canada relations has been deeply divisive.
While the Canadian federal government did not immediately comment on Trump’s new tariffs, the broader consequences for trade remain uncertain. More than three-quarters of Canadian exports go to the U.S., and nearly $2.7 billion in goods and services cross the border daily. The USMCA, signed during Trump’s first term, exempts the majority of Canadian exports from tariffs, but Trump’s administration has found ways to target sectors not covered by the agreement.
As Trump and Carney both head to Malaysia for the ASEAN summit, prospects for a diplomatic breakthrough appear dim. Trump has stated he has no plans to meet with Carney there, telling reporters, “I don’t think there’s much they can do,” and suggesting he was content to leave the trade deal “the way it is.”
For now, the standoff continues, with Canada’s economy—and especially its embattled auto sector—caught in the crossfire of a dispute that began with a single, provocative television ad. Both sides seem to be digging in, with little sign of compromise on the horizon. The world will be watching to see if cooler heads can eventually prevail, or if this latest flare-up marks a new normal in U.S.-Canada trade relations.