US President Donald Trump has taken a hardline stance against Canada by announcing an additional 10% tariff increase on its goods, escalating tensions between the two countries. The move comes after a contentious advertisement featuring Ronald Reagan, the former US president, was broadcast during the World Series.
The ad, which featured footage of Reagan's 1980s speech warning about the dangers of high tariffs, was deemed "fake" by Trump and his administration, claiming that it misrepresented Reagan's views on trade. However, experts say that the advertisement accurately quoted from Reagan's original speech, just in a different order.
As a result of the controversy, Washington suspended all trade talks with Canada, citing concerns over the advertisement's influence on an upcoming US Supreme Court ruling on Trump's tariff policy. But now, Trump is piling on more tariffs, claiming it was necessary to address what he sees as a "hostile act" by the Canadian province of Ontario.
The move has sparked criticism from Canada, which says it's willing to resume trade talks once tensions have cooled down. Meanwhile, Ontario Premier Doug Ford has pulled the advertisement after just one night, saying that trade talks can resume over the weekend.
It's unclear what goods will be affected by Trump's newly announced tariffs, as many Canadian exports are already exempt from US tariffs under the USMCA agreement. However, Canada's economy is still reeling from sector tariffs imposed on steel and aluminum this year, which have had a devastating impact on industries such as manufacturing.
The situation has raised eyebrows in Washington, with some critics accusing Trump of using the ad controversy to distract from his own policies. Regardless, one thing is clear: trade relations between the US and Canada remain under strain, and it'll be a while before tensions ease.
The ad, which featured footage of Reagan's 1980s speech warning about the dangers of high tariffs, was deemed "fake" by Trump and his administration, claiming that it misrepresented Reagan's views on trade. However, experts say that the advertisement accurately quoted from Reagan's original speech, just in a different order.
As a result of the controversy, Washington suspended all trade talks with Canada, citing concerns over the advertisement's influence on an upcoming US Supreme Court ruling on Trump's tariff policy. But now, Trump is piling on more tariffs, claiming it was necessary to address what he sees as a "hostile act" by the Canadian province of Ontario.
The move has sparked criticism from Canada, which says it's willing to resume trade talks once tensions have cooled down. Meanwhile, Ontario Premier Doug Ford has pulled the advertisement after just one night, saying that trade talks can resume over the weekend.
It's unclear what goods will be affected by Trump's newly announced tariffs, as many Canadian exports are already exempt from US tariffs under the USMCA agreement. However, Canada's economy is still reeling from sector tariffs imposed on steel and aluminum this year, which have had a devastating impact on industries such as manufacturing.
The situation has raised eyebrows in Washington, with some critics accusing Trump of using the ad controversy to distract from his own policies. Regardless, one thing is clear: trade relations between the US and Canada remain under strain, and it'll be a while before tensions ease.