Trump: I am increasing tariff on Canada by 10% over and above what they are paying now

Donald Trump has announced a 10% tariff increase on Canadian goods, escalating trade tensions just days before key talks at the ASEAN summit in Malaysia. The move came after Ontario aired an anti-tariff advertisement featuring former US President Ronald Reagan, which Trump called a “fraud.”

Speaking aboard Air Force One, Trump said he was “increasing the Tariff on Canada by 10% over and above what they are paying now,” citing the advert as disrespectful and politically motivated. Canada already faces a 35% levy on US imports, with higher duties on metals (50%) and autos (25%) outside USMCA exemptions.

Canadian Prime Minister Mark Carney said he remained open to discussions but warned that Canada was actively diversifying its trade ties, particularly across Asia. Ontario Premier Doug Ford later paused the Reagan ad campaign “so that trade talks can resume,” though it continued airing during the World Series games between the Toronto Blue Jays and Los Angeles Dodgers.

The one-minute ad, quoting Reagan’s 1987 radio address that “tariffs hurt every American,” drew criticism from the Ronald Reagan Foundation, which accused Ontario of using the late president’s image without permission.

Business groups voiced concern over Trump’s latest escalation. The Canadian Chamber of Commerce said it hoped the dispute would “be resolved through diplomacy,” warning that “tariffs at any level remain a tax on America first.”

Despite the uproar, markets showed little reaction. Analysts noted that most Canada–US trade remains tariff-free under USMCA, and Trump’s threat appears more political posturing than economic policy — a short-term squeeze aimed at improving his leverage in upcoming trade negotiations.