On October 25, 2025, President Donald Trump announced a dramatic escalation in the ongoing trade dispute between the United States and Canada, declaring an additional 10% tariff on Canadian imports. The move, which Trump made public on his social media platform, came as a direct response to a controversial advertisement aired by the Ontario government during Game 1 of the World Series—a spot that featured the late President Ronald Reagan’s voice and remarks about tariffs, but which Trump and the Reagan Foundation say misrepresented Reagan’s views.
“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 posted, according to ABC News. The president’s announcement capped a week of rising tensions, during which he had already suspended trade negotiations with Canada over the ad campaign.
The advertisement, reportedly costing $75 million, was designed by the Ontario government to protest Trump’s tariff policies and aired to a massive American audience during the World Series on October 24. The ad used selective audio from a 1987 Reagan address, in which Reagan discussed the risks of high tariffs and trade wars. However, the Ronald Reagan Presidential Foundation & Institute quickly condemned the campaign, stating it "used selective audio and video" and "misrepresented" Reagan’s message. The Foundation also noted that Ontario "did not seek nor receive permission to use and edit the remarks" and said it was exploring legal options, as reported by Reuters and Fox News.
President Trump, for his part, accused Canada of orchestrating the ad as a "fraudulent advertisement" and claimed its sole purpose was to sway the upcoming U.S. Supreme Court hearing on his administration’s tariff policy. “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 wrote, according to The Epoch Times. He further insisted that Reagan "LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn’t! 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.”
Ontario Premier Doug Ford responded by announcing on October 24 that the ad campaign would be paused starting October 27, after the World Series concluded. Ford explained that the campaign was intended to “initiate a conversation” about the impact of tariffs on workers and to encourage "Reagan Republicans" to engage with "MAGA Republicans," referencing Trump’s Make America Great Again movement. Ford also released a joint video with California Governor Gavin Newsom, making a friendly wager on the outcome of the World Series between the Toronto Blue Jays and the Los Angeles Dodgers, while taking a jab at Trump’s tariffs, as reported by ABC News and The Epoch Times.
Despite Ford’s decision to pull the ad, Trump remained unsatisfied, noting that millions of Americans had already seen it during the World Series. “Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs,” Trump reiterated on Truth Social, as cited by CBC News. “Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing it was a FRAUD.”
The controversy also drew sharp reactions from Canadian leaders. Prime Minister Mark Carney, who was in Malaysia seeking trade opportunities with the Association of Southeast Asian Nations (ASEAN) at the time of Trump’s announcement, has so far refrained from making a direct public comment on the tariff hike. However, after Trump initially suspended trade talks, Carney told reporters that Canada was "ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions because it will be for the benefit of workers in the United States, workers in Canada and families in both our countries." Carney also noted that discussions had been progressing in specific sectors, including steel, aluminum, and energy, as reported by CBC News.
Not all Canadian politicians were as measured. Conservative Leader Pierre Poilievre criticized Carney, arguing that if the prime minister had secured a trade deal by the July 21 deadline he set earlier in the year, Canada would not now be facing Trump’s tariff escalation. “The cost of the Prime Minister’s broken promises is higher U.S. tariffs and lost jobs,” Poilievre declared on social media.
Business leaders on both sides of the border expressed alarm at the prospect of rising tariffs. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, warned that “a TV commercial is about to cost American consumers about $50B because [Trump’s] mad.” Candace Laing, president and CEO of the Canadian Chamber of Commerce, added, “tariffs at any level remain a tax on America first, then North American competitiveness as a whole. We hope this threat of escalation can be resolved through diplomatic channels and further negotiation.... A successful free trade zone is fundamental for both our countries.”
At the heart of the dispute is not just the ad itself, but the broader context of Trump’s tariff policies. The president has long argued that tariffs are a necessary corrective to what he sees as years of unfair trade practices. “We’re the king of being screwed by tariffs,” Trump said earlier this month during a meeting with Canadian Prime Minister Mark Carney, according to Fox News. He has also asserted that Reagan was a supporter of tariffs for national security and economic purposes, a claim disputed by Reagan’s own foundation and by historians who point to Reagan’s advocacy for free trade with Canada, notably in the 1980s.
Adding another layer to the standoff, the U.S. Supreme Court is set to hear arguments in November 2025 regarding the constitutionality of Trump’s sweeping tariff policies. The Trump administration is seeking to overturn a lower court ruling that found the president’s move to impose broad-based tariffs on Canada, Mexico, and dozens of other countries was unconstitutional. Trump has repeatedly alleged—without providing evidence—that the Ontario ad campaign was designed to influence the Court’s decision, calling the upcoming hearing “THE MOST IMPORTANT CASE EVER.”
For now, the ad campaign is set to be pulled from U.S. airwaves after the World Series, but the diplomatic and economic fallout from Trump’s tariff hike is only beginning. With the Supreme Court poised to rule on the legality of Trump’s broader tariff authority, and with trade talks suspended indefinitely, the future of U.S.-Canada trade relations remains uncertain. As the dust settles, one thing is clear: a single television ad has reignited old debates about tariffs, free trade, and the power of presidential rhetoric—leaving businesses, workers, and politicians on both sides of the border bracing for what comes next.
In the days ahead, the world will be watching to see whether cooler heads prevail, or if this latest spat marks the beginning of a deeper rift between two of North America’s closest allies.
