President Donald Trump announced on Saturday that he intends to impose an additional 10% tariff on Canadian imports. This decision follows the airing of an anti-tariff advertisement by Ontario, which utilized quotes from former President Ronald Reagan to criticize U.S. tariffs. The ad, which ran during the World Series, angered Trump, prompting him to threaten to halt trade negotiations with Canada.

Ontario Premier Doug Ford stated that the controversial ad would be removed after the weekend. Trump expressed his frustration on his Truth Social platform while traveling aboard Air Force One to Malaysia. He stated, "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. 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."

The timeline for the implementation of the new tariff and whether it will apply to all Canadian goods remains unclear. The Canadian economy has already faced significant challenges due to existing tariffs imposed by Trump. Canadian Prime Minister Mark Carney has been actively seeking to negotiate lower tariffs with the U.S.

Currently, 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 daily. Many Canadian products are subject to a 35% tariff, while steel and aluminum face tariffs of 50%. Energy products are taxed at a lower rate of 10%, and most goods covered by the U.S.-Canada-Mexico Agreement are exempt from tariffs. This trade agreement is scheduled for review, and Trump has expressed dissatisfaction with it since negotiating it during his first term.

Both Trump and Carney are expected to attend the Association of Southeast Asian Nations summit in Malaysia. However, Trump indicated that he does not plan to meet with Carney during the event. Trump criticized the Ontario ad for misrepresenting Reagan's stance, noting that Reagan was cautious about tariffs and had used parts of a 1987 address in the ad to argue against them.

Additionally, Trump has raised concerns that the ad may influence the U.S. Supreme Court, which is set to hear arguments next month regarding his authority to impose extensive tariffs, a central element of his economic strategy. Lower courts have previously ruled that he exceeded his authority in this regard.