Trump raises tariffs on Canada by 10% over 'FRAUD' ad
What's the story
United States President Donald Trump has announced a 10% increase in tariffs on Canadian goods. The decision follows a dispute over an anti-tariff advertisement from Ontario that featured former US President Ronald Reagan. The ad quoted Reagan's 1987 radio address warning against high tariffs, which he said could lead to trade wars.
Accusations
Ad was a fraud, says Trump
Trump took to his Truth Social platform to express his displeasure with the ad, accusing Canada of serious misrepresentation and calling it a hostile act. He wrote, "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." The president announced he would hike tariffs on Canada by "10% over and above what they are paying now."
Legal review
Ronald Reagan Foundation reviewing legal options
Meanwhile, the Ronald Reagan Foundation has said it is reviewing its legal options over the use of "selective audio and video" in the ad. Ontario announced that it would pull the ad on Monday to restart negotiations with the US. The decision comes after Trump terminated all trade talks with Canada over what he called a "fake" ad campaign.
Trade impact
USMCA keeps around 85% of bilateral trade tariff-free
Currently, both countries are part of the United States-Mexico-Canada Agreement (USMCA), which keeps around 85% of bilateral trade tariff-free. However, Canadian Prime Minister Mark Carney has said that US tariffs are at levels not seen since the Great Depression. He called for a dramatic change in economic strategy, adding that it would take sacrifices and time.
Rising tensions
Trump has no plans to meet Trudeau.
Trump and Carney are both scheduled to attend a dinner at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea on Wednesday. However, Trump has no plans to meet the Canadian PM. The trade dispute is further intensified by the World Series featuring the Canadian team Toronto Blue Jays, againstthe US team Los Angeles Dodgers, with the Blue Jays winning their first game 11-4.