Trump Announces 10% Import Tariff on Canada Following Trade Dispute

US President Donald Trump announced on Saturday a 10% tariff hike on imports from Canada, escalating a burgeoning trade dispute between the two nations and raising the effective levy on certain goods above the existing 35% rate. The move, effective immediately, targets a broad range of Canadian exports and comes amid heightened rhetoric from the White House, which Trump framed as a necessary response to what he called Canadian "economic aggression". This additional duty builds on tariffs already in place under the US-Mexico-Canada Agreement (USMCA), though many exemptions apply to integrated supply chains like automotive parts. The announcement was made via a Truth Social post as Trump prepared for a diplomatic trip to South Asian countries, underscoring the administration's aggressive stance on trade imbalances with close allies.

At the heart of the escalation is a controversial advertisement produced by the Canadian province of Ontario, dubbed the "Fraud Reagan Ad" by Trump. The video features edited excerpts from a 1987 speech by former President Ronald Reagan, in which he warned that tariffs "hit every American" in their wallets, positioning them as broadly harmful. Trump accused the ad of being a "serious misrepresentation of the facts", claiming it selectively edited Reagan's words to ignore his historical support for protective tariffs in cases involving national security and economic fairness. The advertisement, aimed at rallying domestic opposition to US trade policies, has drawn sharp criticism from Trump, who labelled it a "hostile act" and ordered its immediate takedown. The Reagan Foundation announced it is exploring legal options, citing potential unauthorised use of Reagan's likeness and intellectual property.

The dispute traces back to ongoing frictions over USMCA implementation, with Trump alleging that Canada has been manipulating judicial processes, including attempts to influence the US Supreme Court, to evade tariff obligations. He further claimed that Ottawa's actions undermine the spirit of the 2020 trade pact, which he negotiated during his first term to replace NAFTA. While the base 35% tariff largely spares most bilateral trade due to USMCA carve-outs, the new 10% surcharge could disrupt sectors like energy, lumber, and agriculture, where Canada is a major US supplier. Economists warn that retaliatory measures from Canada could inflate consumer prices in both countries and strain North American supply chains still recovering from pandemic-era disruptions.

Also Read: Maduro Accuses US of “Fabricating War” as Pentagon Sends Aircraft Carrier to Caribbean

As of Saturday, neither the White House nor Canadian Prime Minister Justin Trudeau's office had issued formal statements on the tariff imposition, though sources indicate urgent backchannel talks are underway. The episode highlights deepening cracks in US-Canada relations under Trump's second administration, which has prioritised "America First" policies, including targeted duties on allies perceived as unfair traders. With no immediate resolution in sight, the move risks broader economic ripple effects, potentially complicating multilateral efforts on issues like border security and climate cooperation. Analysts anticipate Canadian countermeasures in the coming days, which could further test the resilience of one of the world's largest trading partnerships.

Also Read: Man With Knife Arrested Near US Embassy in Tokyo Ahead of Trump Visit