As tensions between the United States and Canada flare yet again, President Donald Trump’s latest move has sent shockwaves through North America’s economic and political circles. On Saturday, October 25, 2025, President Trump announced plans to increase tariffs on Canadian imports by an additional 10%, a decision triggered by an anti-tariff television advertisement aired by the province of Ontario. The ad, which used the words of former President Ronald Reagan to criticize U.S. tariffs, aired during the first game of the World Series on Friday night, October 24, 2025, and quickly became the flashpoint for a major escalation in cross-border trade tensions.
The advertisement, which Ontario’s Premier Doug Ford said would be pulled after the weekend, was not just a routine piece of political messaging. According to POLITICO and LiveNOW from FOX, the ad featured a 1987 address by Reagan—an address in which the former president spelled out his case against tariffs. For President Trump, however, the use of Reagan’s words was more than a historical reference; it was, in his view, a direct affront to his administration’s economic strategy and a misrepresentation of Reagan’s true stance.
“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 posted on his Truth Social platform as he flew aboard Air Force One to Malaysia. “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 president’s reaction was swift and unequivocal. Not only did he declare an end to all trade negotiations with Canada, but he also ordered the new tariff hike, which would be added to existing rates that already hit some Canadian products as high as 35%, with steel and aluminum facing 50% tariffs. Energy products, meanwhile, are subject to a 10% rate, and the majority of goods—those covered by the U.S.-Canada-Mexico Agreement—are currently exempt from tariffs. Yet, this agreement, negotiated by Trump during his first term, is now itself under review as part of the ongoing dispute.
The White House, for its part, did not immediately respond to requests for comment on the legal authority Trump would use to impose the new import taxes, nor did it clarify when the 10% hike would take effect or whether it would apply to all Canadian goods. As The Associated Press noted, the uncertainty surrounding the mechanics of the tariff increase has only deepened anxieties among businesses and policymakers on both sides of the border.
Canada’s economy, already reeling from previous rounds of U.S. tariffs, stands to be hit hard by the new measures. More than three-quarters of Canadian exports go to the United States, and nearly $3.6 billion Canadian ($2.7 billion U.S.) worth of goods and services cross the border each day. For Canadian Prime Minister Mark Carney, who has been working to persuade Trump to lower existing tariffs, the latest salvo represents a major setback. Spokespersons for both Carney and Ontario Premier Doug Ford declined to comment further on the situation, leaving many in Ottawa scrambling to assess the potential fallout.
The timing of the ad and the subsequent tariff announcement is no coincidence. Trump has complained that the Ontario ad was aimed at influencing the U.S. Supreme Court, which is set to hear arguments in November 2025 on whether the president has the legal authority to impose sweeping tariffs. Lower courts have previously ruled that Trump exceeded his authority, making the Supreme Court’s decision a pivotal moment not just for U.S.-Canada trade, but for the future scope of presidential power over international commerce.
“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,” Trump reiterated to reporters traveling with him. He further accused the ad’s creators of attempting to sway the Supreme Court’s deliberations, a charge that has only intensified the political drama surrounding the case.
Ontario’s Premier Doug Ford, caught in the crossfire, agreed to withdraw the ad after the weekend, but the damage—at least in Trump’s view—had already been done. The ad’s use of Reagan’s anti-tariff rhetoric struck a particular nerve, given Reagan’s status as a conservative icon. Trump insisted that the advertisement misrepresented Reagan’s position, though as POLITICO and LiveNOW from FOX point out, Reagan was indeed wary of tariffs and used much of the 1987 address featured in the ad to argue against them. Still, Trump maintained that the ad was “a fraud” and a “hostile act.”
With both Trump and Carney scheduled to attend the Association of Southeast Asian Nations summit in Malaysia, speculation swirled about whether the two leaders might meet to defuse the crisis. Trump, however, was unequivocal: he told reporters aboard Air Force One that he had no intention of meeting Carney at the summit. This refusal to engage diplomatically underscores the depth of the rift and raises questions about the immediate future of the U.S.-Canada relationship.
For Canadian exporters, the stakes could hardly be higher. Many products already face significant tariffs, and the prospect of an additional 10% hike threatens to further dampen trade, disrupt supply chains, and undermine economic recovery efforts. The uncertainty is especially acute for industries like steel, aluminum, and energy, which have been battered by previous rounds of tariffs and are now bracing for more pain.
The broader context for this dispute is a U.S.-Canada trade relationship that has long been both robust and contentious. The two countries are deeply intertwined economically, but political disagreements—especially over trade policy—have repeatedly tested the partnership. Trump’s decision to renegotiate the U.S.-Canada-Mexico Agreement during his first term was hailed by some as a necessary modernization and criticized by others as protectionist overreach. Now, with the agreement under review and new tariffs looming, the future of North American trade is once again up in the air.
As businesses, lawmakers, and ordinary citizens await clarity on the implementation of the new tariffs, one thing is certain: the fallout from a single television advertisement has spiraled into a full-blown diplomatic and economic crisis. Whether cooler heads will prevail remains to be seen, but for now, the U.S.-Canada trade relationship stands at a crossroads, with both sides bracing for the next move.
With the world watching, the stakes for both countries—and for the broader international trading system—could hardly be higher.