US President Donald Trump announced a 10% tariff increase on Canadian goods after criticising an Ontario government ad he deemed misleading, escalating trade tensions and halting negotiations despite Canada’s move to pause the ad campaign.
US President Donald Trump announced on Saturday, 26 October 2025, that he would raise tariffs on Canadian goods by an additional 10%, citing frustration over a controversial ad aired by Ontario’s government.
Trump announced the tariff hike via a Truth Social post while en route to Malaysia, the first stop on an East Asia trip focused on trade.
“Canada was caught, red-handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs. Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!). Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD. 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. Thank you for your attention to this matter!” Trump posted on Truth Social.
The ad, which ran during the World Series, featured a spliced video of former President Ronald Reagan criticising tariffs, portraying them as harmful to trade and the economy. Trump labelled the ad as misleading and a “hostile act,” claiming it misrepresented facts and escalated tensions between the two nations.
The ad had already been running for several days before Trump reacted on 23 October 2025, ending all trade talks with Canada.
Ontario Premier Doug Ford responded on Friday, stating that the ad campaign would be paused on Monday following discussions with Canadian Prime Minister Mark Carney, in hopes of resuming negotiations.
This latest tariff increase comes on top of existing trade measures, including a 35% tariff on Canadian goods not covered by the USMCA and a 50% tariff on steel and aluminium imports. While Canada had previously rolled back retaliatory tariffs, White House adviser Kevin Hassett noted that trade talks had been unproductive, with Trump growing increasingly frustrated.
