Washington – A Trade Rift Rekindled
Trump Canada tariff news: In a surprising turn of events, U.S. President Donald Trump has announced an additional 10% tariff on Canadian imports, escalating the ongoing trade tensions between Washington and Ottawa. The decision came shortly after Trump expressed anger over an anti-tariff advertisement aired during a baseball World Series game on Friday.
Just two days earlier, Trump had suspended ongoing tariff negotiations with Canada, citing what he called a “fraudulent propaganda campaign.” The commercial that triggered his fury reportedly featured former U.S. President Ronald Reagan’s old remarks warning against tariffs and their impact on American consumers.
With the latest move, U.S. tariffs on Canada will rise from 35% to a steep 45%, making it one of the highest among American trading partners — following India and Brazil.
🇨🇦🇺🇸 Canada’s Ontario PM, Doug Ford, played the Ronald Reagan anti-tariff commercial during the Game One of the World Series of Major League Baseball. A Jab at Trump and USA. Now whether tariffs work or not, it is debatable but prime-time ads like this show the extent of the… pic.twitter.com/dIL42l9WtA
— Economy GDP (@EconomyGdp) October 25, 2025
The Controversial Advertisement That Sparked Trump’s Reaction
The anti-tariff commercial, produced by the province of Ontario, aired during the first game of the World Series, a high-profile baseball championship watched by millions across North America.
In the ad, a voiceover quoted Reagan’s past statements describing tariffs as “a hidden tax that hurts every American family.” The message appeared to directly challenge Trump’s protectionist trade policies — something the White House has aggressively defended since 2024.
Angered by the broadcast, Trump took to social media on Saturday, accusing Canada of “being caught red-handed” and spreading fake messages under the guise of Reagan’s legacy.
“Canada should have immediately pulled that ad,” Trump wrote. “It’s a fraud. They allowed a fake commercial to air during the World Series. Totally unacceptable.”
Ontario’s Premier later responded to the uproar, stating that the ad would be withdrawn after Sunday, but the diplomatic damage had already been done.
Legal and Policy Ambiguities Around the New Tariff
Despite the announcement, it remains unclear under which legal authority President Trump plans to impose the additional 10% tariff. As of now, the White House has not released an official date for when the new tariffs will take effect.
Trade analysts say Trump could invoke national security provisions similar to those used in his first term, when he placed tariffs on steel and aluminum imports. However, such measures are likely to face legal and diplomatic challenges from Canada and potentially from within U.S. courts.
According to U.S.-Canada-Mexico Agreement (USMCA) rules, most goods traded between the two nations are already tariff-free. Yet, the Trump administration continues to argue that Canada’s subsidies and trade policies create an “unfair imbalance” in bilateral trade.
Economic Fallout: Canada’s GDP Faces Potential Decline
The impact of Trump’s tariff decision is expected to hit the Canadian economy hard. According to data from J.P. Morgan, the new tariff could shave off nearly 1.2% of Canada’s GDP over the next five years.
More than three-quarters of Canada’s exports go directly to the United States, making it the country’s largest trading partner. Every day, goods and services worth about 3.6 billion Canadian dollars (roughly USD 2.7 billion) cross the U.S.-Canada border.
Canadian Prime Minister Mark Carney — who recently took office after leading the country’s central bank — has been attempting to de-escalate trade tensions with Washington. However, Trump’s latest announcement is expected to complicate those efforts.
Carney’s office issued a brief statement saying Canada “remains committed to fair trade and open dialogue” but will “protect national interests if required.”
Trump’s Broader Trade Strategy
This new tariff comes as part of Trump’s broader effort to reassert U.S. dominance in global trade, a central theme of his renewed presidency. His administration has often argued that tariffs protect American manufacturing jobs and reduce dependency on foreign imports.
However, economists argue that the move could backfire by increasing prices for American consumers and businesses that rely heavily on Canadian goods, including raw materials, vehicles, and agricultural products.
Political analysts see Trump’s actions as both economic and symbolic, aimed at projecting toughness ahead of a potential 2028 re-election bid. His message to supporters has consistently focused on “America First” — even when it strains relationships with traditional allies like Canada.
The Reagan Factor: History Repeats Itself
The controversy surrounding Reagan’s name adds a historical twist to the current trade spat. While Reagan did warn against excessive tariffs during his presidency, he also supported limited duties for national security reasons — a nuance often debated in modern political circles.
Trump, in his social media posts, highlighted this contradiction and accused Canada of “twisting Reagan’s legacy for political purposes.”
Political observers in Washington believe that invoking Reagan — a conservative icon revered by many Republican voters — struck a personal chord with Trump, prompting his aggressive response.
What’s Next for U.S.-Canada Trade Relations?
Both Trump and Prime Minister Carney are expected to attend the upcoming ASEAN Summit in Malaysia, where multiple global trade issues will be discussed. Yet, according to reporters traveling with Trump, the President has “no plans to meet” with his Canadian counterpart during the summit.
Diplomatic experts warn that this episode could mark the lowest point in U.S.-Canada relations in recent years, potentially impacting future cooperation on defense, climate, and energy projects.
Despite tensions, several U.S. industry groups — especially in the automotive and agriculture sectors — have urged the administration to reconsider the tariff escalation, emphasizing that Canada remains a vital trading partner and that punitive measures could disrupt supply chains on both sides of the border.
Global Reactions and Market Response
Markets reacted cautiously following Trump’s announcement. The Canadian dollar dipped slightly against the U.S. dollar, while commodity prices linked to steel and aluminum saw a modest uptick amid fears of supply constraints.
International leaders, including officials from the European Union and World Trade Organization (WTO), have called for restraint and dialogue, warning that the new U.S.-Canada trade rift could further destabilize global markets already strained by inflation and geopolitical uncertainty.
Also read: Message from UN Chief Guterres: Spend Resources on Peace, Not War
Conclusion
The “Trump Canada tariff news” has once again underscored the fragile balance between politics and trade. What began as a dispute over a televised advertisement has rapidly evolved into a full-blown economic confrontation — one that could reshape North American trade dynamics for years to come.
As both nations prepare for global summits and domestic political challenges, the path forward remains uncertain. But one thing is clear: the trade tensions between Washington and Ottawa are far from over, and the world will be watching closely.
