Trump Escalates Trade Tensions with Canada Over Controversial Reagan Ad

Max Matza
TrumpGetty Images
Trump posted about the tariff increase while flying to Malaysia on Saturday.

Donald Trump has stated that he is increasing US tariffs on Canadian imports by 10%, following the airing of an anti-tariff advertisement featuring Ronald Reagan by officials from Ontario.

Describing the ad as a fraud, Trump expressed his disappointment that Canadian officials didn't take it down before the World Series, where it was still aired. Prime Minister Jay Carney acknowledged the controversial nature of the advertisement, while also indicating Canada's openness to continue trade discussions.

Since Trump began imposing high tariffs, Canada remains the only G7 nation yet to achieve a new trade agreement. Currently, the US has already imposed a 35% tariff on several Canadian goods, with additional sector-specific tariffs in place.

Trump, while en route to Asia, commented on the increased tariff, explaining that tariffs are ultimately paid by the companies importing foreign products, thus affecting the economics of trade between the US and Canada, where a significant portion of Canadian exports go to the US.

Maintaining a focus on negotiations, Prime Minister Carney emphasized tackling trade talks mainly for the benefit of Canadian workers, while also asserting that Canada is diversifying its trade partnerships with other nations.

Alongside this announcement, Trump's relations with Canada seem to be at a critical juncture as the continued airing of the Reagan advertisement—and Canadian officials' subsequent comments—serve as ongoing points of contention. As trade negotiations continue, both nations remain hopeful for a resolution despite escalating tensions.

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