'Ronald LOVED tariffs': Trump punishes Canada with 10% tariff for running 'fraudulent' Reagan ad

US President Donald Trump said on Saturday (Oct 25) that he was increasing tariffs on Canada by an additional 10 per cent "above what they're paying now." In a post on Truth Social, Trump said that he had taken the decision over a tariff-related ad by Canada's Ontario province, featuring a video of former US President Ronald Reagan. Trump said that the ad was misleading as Reagan was quoted saying in the ad that tariffs cause trade wars and economic disaster. Trump's reaction came a day after it was aired during the World Series broadcast. On Thursday, Trump reacted to the ad for the first time and ended trade talks with Canada.

Trump's latest reaction comes after the advertisement aired Friday during the broadcast for Game 1 of Major League Baseball's World Series. “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,” Trump posted. “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,” he added. Ontario’s advertisement features Ronald Reagan’s voice criticising tariffs on imports, warning they lead to job losses and trade conflicts. It pieces together five full sentences from one of his weekly speeches, rearranged out of order. The ad omits that Reagan’s remarks were made while justifying limited tariffs on Japan as an unfortunate but necessary exception to his strong support for free trade.

However, news agency Reuters reported that majority of Canadian exports to the US were exempt from tariffs because of the United States-Mexico-Canada Agreement (USMCA) that was signed during Trump's first term.

The Trump administration in August imposed a 35 per cent tariff on Canadian goods not covered by the USMCA and there's a 50 per cent tariff on steel and aluminum.