Trump Imposes New 10% Tariff on Canada Over Ontario’s Reagan Ad Controversy

President Trump imposes an additional 10% tariff on Canada after Ontario airs a Reagan-themed ad criticizing U.S. trade policies during the World Series.

TheInterviewTimes.com | October 26, 2025 — In a move that reignited trade tensions across North America, President Donald Trump announced an additional 10% tariff on Canada, effective immediately, following a controversial advertisement aired by Ontario that featured edited remarks from former U.S. President Ronald Reagan.

The announcement came through Trump’s Truth Social account late Saturday, where he accused the Canadian province of “fraudulently misrepresenting Reagan’s trade views” and attempting to influence U.S. domestic politics. The new tariff on Canada applies “over and above what they are paying now,” Trump wrote, describing Ontario’s campaign as a “hostile act.”

Reagan Ad Sparks Diplomatic Fallout

The Ontario-funded advertisement, aired during Game 1 and Game 2 of the 2025 World Series between the Toronto Blue Jays and Los Angeles Dodgers, featured Reagan’s 1987 radio address warning that tariffs “raise prices for every American consumer.” Trump alleged that the video used “selective and misleading” clips to criticize his administration’s protectionist trade policies.

The Ronald Reagan Presidential Foundation and Institute condemned the use of Reagan’s image and words without authorization, calling the ad a “distortion of history” and announcing that legal action was under review.

Ontario Premier Doug Ford’s office confirmed the ad’s production, stating that it was meant to highlight “shared North American values on free trade.” A spokesperson said the ad would be pulled after the weekend, but Trump cited the delay in its removal as justification for imposing the new tariff on Canada.

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Tariff on Canada Escalates Trade Tensions

The latest tariff on Canada comes on top of existing U.S. levies — 35% on most imports, 50% on steel and aluminium, and 10% on energy products. Many goods remain exempt under the U.S.-Mexico-Canada Agreement (USMCA), but the new measure is expected to impact a wide range of industries.

Trade experts say this marks the first time a U.S. tariff has been imposed in response to a foreign government’s advertising campaign, setting a controversial precedent in international trade relations.

Earlier this week, the Trump administration suspended ongoing bilateral trade talks with Canada and cancelled a planned meeting between Trump and Canadian Prime Minister Mark Carney at the ASEAN Summit in Laos.

Canadian officials have not yet announced retaliatory measures, though trade ministry sources hinted at “calibrated options” under review.

Supreme Court Case Adds Legal Dimension

The tariff on Canada also ties into a broader legal debate in the U.S. Supreme Court over presidential trade authority. Trump referenced a pending case challenging his use of Section 232 of the Trade Expansion Act of 1962 and the International Emergency Economic Powers Act (IEEPA) to impose tariffs without congressional approval. Oral arguments in the case are scheduled for early November 2025.

Legal analysts suggest Trump’s latest move could influence the Court’s interpretation of executive power in trade matters. If upheld, it could give the White House broader discretion to impose tariffs for political or diplomatic reasons.

Economic and Political Impact

According to the U.S. Census Bureau, the United States imported approximately $420 billion in goods from Canada in 2024, making Canada America’s second-largest trade partner after China. Analysts warn that the additional 10% tariff on Canada could affect sectors ranging from automobiles and energy to agriculture and manufacturing.

Economists estimate that if Canada retaliates, bilateral trade could shrink by up to $60 billion over the next year. U.S. businesses dependent on Canadian raw materials — particularly in the Midwest and Great Lakes regions — may face higher costs and supply chain disruptions.

The Toronto-based firm that produced the Reagan ad has not commented publicly, but sources confirmed that it was approved and financed by Ontario’s Ministry of Economic Development. Nielsen data shows that the ad reached more than 12 million American viewers per game during the World Series broadcasts.

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A New Chapter in U.S.-Canada Relations

The sudden tariff on Canada underscores how political messaging can inflame cross-border economic relations. While trade between the two nations has historically been stable under the USMCA framework, Trump’s response signals a shift toward using tariffs as tools of political retaliation rather than economic protection.

Diplomatic observers say this episode could strain U.S.-Canada relations for months, especially as both sides prepare for critical elections in 2026.

Conclusion

The 10% tariff on Canada reflects a convergence of politics, media, and trade — with the Reagan ad controversy serving as an unlikely flashpoint. As Washington and Ottawa navigate this latest rift, questions remain about the limits of executive power, the politicization of trade policy, and the lasting impact on one of the world’s most important bilateral relationships.