Trump Imposes 10% Tariff on Canada Over Controversial Ad

Trump's Tariff Decision Linked to Ontario's Anti-Tariff Ad

On Saturday, President Donald Trump announced his intention to impose an additional 10% tariff on Canadian imports, a move prompted by an anti-tariff advertisement broadcast by the province of Ontario.

Ad Sparks Controversy

The advertisement utilized quotes from former President Ronald Reagan to challenge U.S. tariffs, which infuriated Trump. In response, he declared he would cease trade negotiations with Canada. Ontario’s Premier Doug Ford stated he would remove the ad after the weekend, but it aired on Friday evening during the opening game of the World Series.

Trump's Reaction

“Their advertisement was supposed to be taken down IMMEDIATELY, but they allowed it to run last night during the World Series, knowing it was a FRAUD,” Trump expressed on his Truth Social platform while en route to Malaysia aboard Air Force One.

“Due to their serious misrepresentation of the facts and this hostile act, I am raising the tariff on Canada by 10% beyond what they are currently paying.”

Legal Authority in Question

As of now, it remains unclear what legal grounds Trump would invoke to implement these additional import duties. The White House has yet to respond to inquiries regarding when this 10% hike will take effect or if it will apply to all Canadian products.

Impact on Canada’s Economy

The Canadian economy has already been significantly affected by Trump's tariffs. Prime Minister Mark Carney has been working to negotiate lower tariffs with Trump, as over three-quarters of Canadian exports are directed to the U.S., with nearly $3.6 billion Canadian (approximately $2.7 billion U.S.) worth of goods and services crossing the border each day.

Response from Officials

Representatives for both Carney and Ford did not provide immediate comments when approached for their reactions.

Existing Tariff Rates

• Many Canadian goods currently face a 35% tariff.
• Steel and aluminum imports are subjected to a staggering 50% tariff.
• Energy products carry a lower rate of 10%.
• Most goods are covered under the U.S.-Canada-Mexico Agreement and are exempt from tariffs, though this agreement is set for review.

Trump was the architect of this trade deal during his first term but has since expressed dissatisfaction with it.

Upcoming ASEAN Summit

Both Trump and Carney are scheduled to attend the Association of Southeast Asian Nations summit in Malaysia. However, Trump has indicated that he does not plan to meet with Carney during this trip.

Misrepresentation of Reagan's Views

Trump criticized the ad for allegedly misrepresenting Reagan's stance, noting that the former president remains a revered figure among Republicans. However, it is worth mentioning that Reagan was known to have reservations about tariffs and the ad prominently featured portions of his 1987 address, which articulated a case against such trade barriers.

Implications for Supreme Court Case

Trump has alleged that the advertisement was strategically aimed at swaying the U.S. Supreme Court ahead of arguments scheduled for next month, which could determine whether he has the authority to impose his extensive tariffs, a pivotal element of his economic agenda. Earlier court decisions had ruled that he had overstepped his legal authority.

This article was originally published on Fortune.com