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Trump raises tariffs on Canadian goods over Reagan advert

October 26, 2025

President Donald Trump has announced a 10% increase in tariffs on Canadian imports following an anti-tariff advertisement by Ontario featuring Ronald Reagan that Trump called a "fraud. " Although Ontario Premier Doug Ford agreed to pause the campaign to allow trade talks to resume, he noted the ads would still run during World Series games over the weekend. Canada remains the only G7 country without a tariff deal with the US, which has already imposed a 35% general levy on Canadian goods (with many exemptions) plus sector-specific tariffs including 50% on metals and 25% on automobiles.

Who is affected

  • Canadian exporters and manufacturers, particularly in Ontario
  • US companies importing Canadian products (who actually pay the tariffs)
  • Canadian workers in export-oriented industries, especially automobile manufacturing
  • US consumers who may face higher prices for Canadian goods
  • The broader Canadian economy, which relies heavily on US trade

What action is being taken

  • Donald Trump is increasing tariffs on Canadian imports by an additional 10%
  • Ontario is continuing to air the Reagan-featuring anti-tariff advertisement during World Series games over the weekend
  • Canadian trade minister Dominic LeBlanc is maintaining diplomatic engagement with US counterparts
  • Ontario Premier Doug Ford is pausing the broader anti-tariff advertising campaign to allow trade talks to resume
  • The Canadian Chamber of Commerce is advocating for diplomatic resolution

Why it matters

  • Three-quarters of Canadian exports go to the US market, making tariffs particularly impactful for Canada's economy
  • Ontario houses the bulk of Canada's automobile manufacturing, which faces a 25% tariff
  • The tariffs represent a significant economic challenge in US-Canada relations as Canada remains the only G7 country without a tariff deal
  • The dispute has escalated to involve political advertising and public diplomacy using historical American political figures
  • The tariffs could disrupt integrated North American supply chains and economic partnerships

What's next

  • No explicit next steps stated in the article

Read full article from source: BBC