US President Donald Trump has announced a new 10% tariff on Canadian imports, escalating the ongoing trade tensions with Ottawa. This additional levy will be applied on top of existing tariffs already in place for imports from Canada.
Trump Clarifies New Tariff
Trump clarified that the new tariff will be charged above and beyond what is already in place for imports from Canada. This decision comes just days after Trump ended all trade negotiations with Ottawa, citing a controversial advertisement that allegedly misrepresented former US President Ronald Reagan’s views on tariffs.
“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 said about the Reagan advertisement on his Truth Social platform.
The Republican leader added that Ottawa was “caught red-handed” putting up “a fraudulent advertisement” on Ronald Reagan’s speech regarding tariffs.
“The Reagan Foundation said that they created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address and ‘did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.’ 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,” the post said.
Background on US-Canada Trade Tensions
Earlier this year, the US imposed a 25% tariff on Canadian exports and a 10% tariff on energy product exports from Canada. In retaliation, Canada introduced counter tariffs on $30 billion worth of US goods, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, and more.
Following previous tariffs on steel and aluminium, Canada applied 25% tariffs on steel and aluminium products from the US, along with tools, computers, display monitors, sports equipment, and cast-iron products.
The Ronald Reagan Advertisement Controversy
An anti-tariff advertisement aired in Ontario featured excerpts from a 1987 radio address by former President Ronald Reagan. The one-minute ad was used to justify imposing 100% tariffs on Japanese electronics during a trade dispute over semiconductors. It also warned of the long-term risks of imposing tariffs on foreign imports to the US.
“High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens. Markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs,” Reagan narrates in the advertisement.
The ad aired on Newsmax and Bloomberg, sparking controversy and prompting Trump to increase the tariff on Canada.
