Tariffs and an Ad: What Happened Between the U.S. and Canada

President Donald Trump announced a 10% increase in tariffs on Canadian imports and said he has terminated all trade negotiations with Canada, a move that has sent markets and diplomats scrambling. The statement was posted on his social platform as officials described the immediate cause: an Ontario government advertisement that used audio from Ronald Reagan’s 1987 radio address.

Ontario’s campaign, which cost about C$75 million, ran during the World Series and aimed to reach American voters with a message opposing tariffs, Premier Doug Ford said. "Over the long run, such trade barriers hurt every American worker and consumer." The Ronald Reagan Presidential Foundation criticized the ad as using selective excerpts, and fact-checkers noted the ad omitted context in which Reagan accepted limited duties in 1987.

Legal analysts say the White House has not specified which goods will be affected or when the extra 10% will apply, so businesses face uncertainty while supply chains adjust. Although Canada exports most of its goods to the United States, officials have signalled plans to diversify markets, a step that could reduce risk if tensions persist. If tariffs rise further, both countries could see higher prices and stalled investment, consequences that diplomats say would be hard to reverse.

Negotiators now say they will watch whether Ontario follows through on its pledge to pause the ads and whether Washington publishes precise tariff rules. Markets and manufacturers, which rely on cross-border supply chains, are bracing for changes while lawyers and trade experts parse the legal path ahead.