Kuala Lumpur, October 26, 2025: US President Donald Trump has announced a 10% increase in tariffs on Canadian goods, citing an Ontario government advertisement that used footage of former US President Ronald Reagan criticising tariffs.
Calling the advert a “fraud,” Trump lashed out at Canadian officials for not withdrawing it before the World Series baseball championship, saying in a social media post on Saturday that the move was “disrespectful.”
The new tariff hike adds to existing duties that already include a 35% levy on all Canadian imports, with specific surcharges of 50% on metals and 25% on automobiles. Trump clarified that the new rate would apply “over and above what they are paying now.”
Canadian Prime Minister Mark Carney, speaking on the sidelines of the ASEAN Summit in Malaysia, said his government remained ready “to continue building on the progress” made in trade talks but noted that Canada was also diversifying its trade partnerships, particularly with ASEAN members.
Carney added that Canada would soon unveil an “ambitious budget” focused on long-term investments while continuing efforts to secure a fair trade deal with the US.
The controversy stems from an Ontario government advertisement featuring excerpts from Reagan’s 1987 radio address, where he said tariffs “hurt every American.” The Ronald Reagan Foundation criticised the ad for taking quotes out of context and said Ontario did not seek permission to use the footage.
Ontario Premier Doug Ford said on Friday he would pause the campaign to allow trade discussions to resume, but the commercial would still air through the weekend during the World Series games between the Toronto Blue Jays and the Los Angeles Dodgers.
Trump, however, insisted the ad should have been pulled “immediately” and ruled out any meeting with Carney during his Asia tour.
The Canadian Chamber of Commerce urged restraint, saying the dispute should be resolved diplomatically. “Tariffs at any level remain a tax on America first, then North American competitiveness as a whole,” said Candace Laing, the organisation’s CEO.
Meanwhile, Ford and California Governor Gavin Newsom exchanged light-hearted remarks about tariffs in a social media video tied to their friendly World Series wager, with both leaders calling for a “tariff-free friendship” between Ontario and California.
