KUALA LUMPUR - Prime Minister Mark Carney addressed the Association of Southeast Asian Nations (ASEAN) leaders summit on Sunday, emphasizing Canada's commitment to a rules-based trade system. His remarks came as U.S. President Donald Trump threatened to impose new tariffs on Canada over a controversial advertisement.

"We value a rules-based system. We respect trade agreements and the rule of law. We value the free exchange of goods, capital, and ideas," Carney stated, indirectly contrasting Canada's trade approach with that of the Trump administration.

Trump's comments, made while traveling to Malaysia, were in response to a $75 million anti-tariff advertisement run by the Ontario government in U.S. markets. The ad features clips of former President Ronald Reagan discussing tariffs. Trump expressed his displeasure on social media, stating, "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." He announced plans for an additional 10 percent tariff on Canadian goods, although details on implementation remain unclear.

The tensions come at a time when hopes were rising for a trade agreement between Canada and the U.S. Carney had previously downplayed expectations of signing a deal during his visit to Asia but expressed eagerness to meet with Trump. However, it is now uncertain if such a meeting will occur this week, as both leaders are scheduled to attend the Asia Pacific Economic Cooperation forum in South Korea later this week.

During his speech, Carney highlighted the challenges posed by "transactional bilateral trade" and the shifting dynamics of global power, which he said threaten the institutions that countries like Canada and those in Southeast Asia depend on. He stressed the importance of reliable partnerships, asserting that Canada is committed to being such a partner.

Carney's address coincided with Trump's arrival at a convention center in Kuala Lumpur for a peace deal signing between Thailand and Cambodia. Canadian officials noted that Carney and Trump had not communicated since Thursday.

In his speech, Carney outlined plans to double non-U.S. exports over the next decade and to quadruple defense spending within four years, focusing on cybersecurity and artificial intelligence. He also mentioned Canada's recent trade agreement with Indonesia, the first with an ASEAN member, and pledged to expedite bilateral agreements with other interested nations.

Carney reaffirmed Canada's commitment to finalizing a trade deal with ASEAN as a whole by next year. The summit also marked the official welcome of Timor-Leste as the 11th member of the ASEAN bloc. Carney engaged in discussions with the prime ministers of Laos and Vietnam, as well as the president of the Philippines, before participating in a fireside chat at the ASEAN business and investment summit.