Reagan advert effect: Trump ramps up tariffs on Canadian goods

In a dramatic escalation of longstanding trade tensions, US President Donald Trump announced he would impose an additional 10% tariff on imports from Canadian, citing a "fraudulent" anti-tariff television advertisement sponsored by the Canadian province of Ontario.

The move, which Trump framed as retaliation for a "hostile act," comes just days after he abruptly terminated all ongoing trade negotiations with Canada, further straining the economic ties between the world's largest bilateral trading partners.

The controversy centres on a 60-second commercial, funded by Ontario's provincial government at a reported cost of up to C$75 million (about $55 million), which aired on major US networks, including during Game 1 of the World Series on Friday night.

The ad features edited audio clips from a 1987 radio address by former President Ronald Reagan, a Republican icon revered by many in Trump's party, in which he warns against the long-term dangers of protectionist trade barriers.

"When someone says: ‘Let’s impose tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products and jobs," Reagan intones in the spot.

"And sometimes, for a short while it works, but only for a short time. But over the long run, such trade barriers hurt every American worker and consumer. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars."

Trump, aboard Air Force One en route to Malaysia for the Association of Southeast Asian Nations (ASEAN) summit, lashed out in a series of posts on his Truth Social platform.

"CANADA CHEATED AND GOT CAUGHT!!! They fraudulently took a big buy ad saying that Ronald Reagan did not like Tariffs, when actually he LOVED TARIFFS FOR OUR COUNTRY, AND ITS NATIONAL SECURITY," he wrote on Friday.

He followed up on Saturday: "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."

The Ronald Reagan Presidential Foundation & Institute swiftly condemned the ad, stating on X (formerly Twitter) that Ontario "did not seek nor receive permission to use and edit the remarks" from Reagan's April 25, 1987, address, which was delivered from Camp David amid US disputes with Japan over semiconductors.

The foundation described the clip as "selective audio and video" that "misrepresents" the full speech, which balanced a defense of targeted tariffs against broader advocacy for free and fair trade.

It is now reviewing legal options, including potential copyright claims.

Trump echoed this criticism, accusing the ad of being designed to sway the U.S. Supreme Court ahead of oral arguments next month in a high-stakes case challenging the president's broad authority to impose unilateral tariffs under national security pretexts — a cornerstone of his "America First" economic agenda.

Ontario Premier Doug Ford, a self-proclaimed "big Ronald Reagan fan," launched the ad campaign on October 16, posting it on X with the caption: "Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together."

Ford, whose province is Canada's industrial heartland and home to more than a third of its population, has been one of the most vocal critics of Trump's tariffs, which he argues are devastating Ontario's auto, steel, and lumber sectors.

The ad was intended to run on platforms like Bloomberg and Fox News, targeting Republican-leaning districts to highlight the shared North American costs of protectionism.

Facing backlash, Ford announced on Friday — after consultations with Canadian Prime Minister Mark Carney — that the campaign would pause on Monday "so that trade talks can resume."

In a statement, Ford emphasised: "Canada and the United States are friends, neighbours and allies. President Ronald Reagan knew that we are stronger together."

He also posted the full Reagan address online for context.

However, Trump dismissed the concession as too late, noting the ad's airing during the high-profile World Series game between the Los Angeles Dodgers and New York Yankees, which drew over 14 million viewers.

U.S. Treasury Secretary Scott Bessent amplified the administration's ire during a Sunday appearance on CBS's Face the Nation, calling the ads "propaganda coming across our border to decry the tariffs" and accusing Ontario of "interference in US sovereign matters."

"What's the purpose of that other than to try to sway U.S. public opinion?"

Bessent asked, estimating the campaign's cost at up to $75 million.

This latest salvo builds on months of friction.

Since taking office in January 2025, Trump has aggressively wielded tariffs as leverage in global negotiations, imposing a baseline 35% duty on most non-exempt Canadian goods in August — up from an initial 25% fentanyl-related levy in March.

Steel and aluminum imports face 50% rates, while energy products like oil are at 10%.

Softwood lumber incurs an additional 10% on top of existing duties, and some auto parts are hit with 25%. Over three-quarters of Canada's exports—valued at roughly C$3.6 billion (US$2.7 billion) daily—flow south to the U.S., making the northern neighbor particularly vulnerable.

Economists estimate the tariffs have already shaved 1.5-2% off Canada's GDP growth this year, with Ontario's manufacturing hub bearing the brunt.

The United States-Mexico-Canada Agreement (USMCA), which Trump negotiated and signed in his first term as a replacement for NAFTA, exempts most compliant goods from these duties.

However, Trump has since soured on the pact, calling it "unfair" to American workers and vowing a comprehensive review in 2026.

Intensive talks to lower select tariffs had been underway for months, with Carney—Canada's former Bank of England governor—pushing for warmer relations than those under Trump's predecessor, Justin Trudeau.

Those discussions collapsed Thursday night, hours after Trump's initial Truth Social outburst.

Carney, speaking from the ASEAN summit in Kuala Lumpur, struck a measured tone. "We remain ready to continue to build on the progress we had been making," he said in a statement, while signalling a diversification strategy: Canada aims to boost non-US exports by 50% over the next decade, with Southeast Asia as a key focus.

Trade Minister Dominic LeBlanc added that "progress is best achieved through direct engagement," but noted Canada is "developing trade relationships with other countries" amid the impasse.

Trump, meanwhile, told reporters on Air Force One that he had "no intention" of meeting Carney in Malaysia, despite both leaders' attendance.