United States President Donald Trump announced on 25 October 2025 that the U.S. will impose an additional 10 percent tariff on Canadian imports. The announcement followed an Ontario government advertisement that aired during the World Series and featured former President Ronald Reagan warning against protectionist trade policies.
Trump described the ad as a hostile act and accused the Canadian province of misrepresenting facts regarding U.S. trade policy. The commercial, produced under the administration of Ontario Premier Doug Ford, used archival Reagan audio clips and appeared to criticize the tariff approach of Trump as economically damaging to cross-border relations.
Nevertheless, pending further clarifications, the White House said the 10 percent tariff increase would apply to unspecified categories of Canadian goods. The second Trump administration reinstated tariffs on Canadian steel and aluminum earlier this year. It cited what it called unfair trading advantages gained through subsidies and currency disparities.
The triggering incident was the continued airing of the Reagan-themed advertisement despite an earlier assurance from Ford to Canadian Prime Minister Mark Carney that the campaign would be paused. The commercial reportedly aired during a World Series broadcast on October 24. This angered the U.S. president and prompted an immediate retaliation.
Prime Minister Carney responded diplomatically. He stated that Canada remains open to renewed dialogue on trade normalization. Carney emphasized that his administration sought stability through the United States-Mexico-Canada Agreement. He believed this should prevent impulsive tariff escalations affecting key manufacturing and agricultural sectors.
Trump, however, declared that there were no current plans to meet with Carney during the upcoming international summits in Asia. Both leaders are expected to attend the Association of Southeast Asian Nations meeting in Thailand in early November. Regional trade discussions during the summit may highlight growing United States-Canada tensions.
A further increase in tariffs for Canadian imports could threaten the export-dependent Canadian economy. 75 percent of its exports are sent to the U.S. Retaliatory measures could also follow and affect auto manufacturing, lumber, and agricultural commodities that depend heavily on tariff-free access under the United States-Mexico-Canada Agreement.
The Reagan advertisement controversy marks a rare instance of cultural messaging prompting a direct economic action between the two closely linked nations. The actions of Trump also showed the use of rapid policy measures to respond to perceived slights. The tariff escalation adds further uncertainty to bilateral economic planning ahead of next year.