Trump Adds Another Tariff Threat To Canada After Reagan Advert

26th October 2025

Donald Trump announced on 25 October 2025 that he will raise U.S. tariffs on Canadian imports by 10% in direct response to a television advertisement funded by Ontario which aired during the World Series and criticised U.S. tariffs.

The advertisement featured a speech by Ronald Reagan to question U.S. tariff policy; the U.S. president characterised this as a "hostile act" and misrepresentation.

While most Canadian exports are covered under the United States-Mexico-Canada Agreement (USMCA) and thus exempt, this raise is a further escalation of trade tensions.

Why this matters
Canada is highly dependent on trade with the U.S., so an increase in tariffs can have ripple effects across Canadian industry, exports and growth.

According to the Bank of Canada, under a scenario of elevated tariffs, Canadian output could decrease by roughly 3% over two years, and inflation could rise.
Bank of Canada

The latest move signals that even longstanding trade relationships (between the U.S. and Canada) are vulnerable to political and symbolic triggers (like an advertisement) — which adds unpredictability.

It is not yet clear exactly which Canadian goods will be subject to this extra 10% rise.
Reuters

The USMCA still protects many goods that are compliant with its rules. So the effect may be uneven, hitting some sectors more than others.

This is part of a broader pattern: earlier in 2025 there were tariffs of 25% on Canadian steel and aluminium, and threats of doubling to 50%.