Article image

The Reagan Ad and the Tariff War

Washington escalates trade conflict with Ottawa over a political advertisement

Sunday, 26 October 2025 07:52

Abstract

The United States has imposed an additional 10 per cent tariff on Canadian imports, citing the continued broadcast of a provincial anti-tariff advertisement as a 'hostile act'1,2,11. The new levy, announced by President Donald Trump, marks a significant escalation in the ongoing trade dispute between the two North American allies1,7,16. The advertisement, which used excerpts from a 1987 speech by former President Ronald Reagan to criticise protectionist policies, was deemed a 'fraudulent' misrepresentation by the White House and the Reagan Foundation1,4,15.

Historical Context

Recent Findings

The Hostile Act and the New Levy

President Donald Trump announced the new 10 per cent tariff on Canadian goods on Saturday, October 26, stating the increase would be applied 'over and above what they are paying now'1,7,14. The decision was communicated via a post on the Truth Social platform, where the President accused Canada of a 'serious misrepresentation of the facts' and a 'hostile act'1,2,11,15. The immediate trigger for the escalation was the continued airing of a television advertisement sponsored by the government of the Canadian province of Ontario2,5,16. The advertisement ran during the broadcast of Game 1 of the World Series on Friday night, a move the White House viewed as a deliberate provocation2,12,16. Mr Trump claimed the advertisement was supposed to have been taken down 'IMMEDIATELY' and that its broadcast during the high-profile sporting event was done 'knowing that it was a FRAUD'1,12. This latest measure follows the abrupt termination of all trade negotiations with Ottawa just days earlier, which the US President also attributed to the controversy surrounding the advertisement4,6,9,11.

The Ghost of Free Trade

The contentious advertisement was commissioned by Ontario Premier Doug Ford’s government as part of a campaign to oppose the American tariffs5,6,10. The one-minute commercial featured clips from a 1987 radio address on trade delivered by then-President Ronald Reagan5,7,11. The excerpts used in the advertisement included Reagan’s warning that 'trade barriers hurt every American worker' and that 'High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars'6,8,11,16. The intention of the Ontario government was to initiate a conversation among American audiences about the negative impact of tariffs on workers and businesses10. However, the Ronald Reagan Presidential Foundation and Institute quickly issued a statement protesting the use of the speech1,4,5. The Foundation claimed that the Ontario government had used 'selective audio and video' and that the advertisement 'misrepresents the Presidential Radio Address'1,4,15. The Foundation also confirmed that the provincial government had not sought or received permission to use or edit the remarks and was reviewing its legal options1,4,16. The full context of Reagan’s 1987 address was a defence of free but fair trade, where he explained his decision to impose temporary duties on Japanese goods in a trade dispute, while simultaneously giving a lengthy warning against the dangers of protectionism5,6. Mr Trump, in his social media posts, countered the advertisement’s message by claiming that Mr Reagan 'LOVED Tariffs for purposes of National Security and the Economy'1,14.

A History of Escalation

The new 10 per cent tariff is the latest in a series of punitive measures that have severely strained the world’s largest bilateral trade relationship9,13. Earlier in the year, the Trump administration had already imposed a 35 per cent levy on Canadian imports not covered by the United States-Mexico-Canada Agreement (USMCA)2,5,16. Sector-specific tariffs have been even higher, with steel and aluminium products facing rates of 50 per cent12,16. In response to the initial tariffs, Canada had imposed 25 per cent counter-tariffs on approximately $30 billion worth of American goods, including appliances, apparel, and food products4. These retaliatory tariffs were subsequently lifted in August 2025 as part of an effort to de-escalate tensions and resume trade negotiations2. The USMCA, which was negotiated during Mr Trump’s first term, ensures that a large share of cross-border trade, estimated at roughly 85 per cent, remains tariff-free7,13. However, the agreement is slated for a mandatory six-year review in July 2026, and the current administration has expressed dissatisfaction with its terms5,12. Beyond the immediate trade dispute, Mr Trump also alleged that the Ontario advertisement was a deliberate attempt to interfere with the US Supreme Court4,15. The court is scheduled to hear oral arguments on November 5 in a case that challenges the legality of the President’s sweeping global tariffs, a key pillar of his economic policy5,11,13.

Economic and Diplomatic Fallout

The economic impact of the escalating trade war has been particularly acute for Ontario, the province responsible for the controversial advertisement6,13. As a major hub for the steel, aluminium, and automotive industries, Ontario has been disproportionately affected by the American import taxes6,7,13. The Canadian Chamber of Commerce warned that tariffs, at any level, remain a tax on North American competitiveness as a whole13,16. The organisation’s head, Candace Laing, expressed hope that the threat of further escalation could be resolved through diplomatic channels13,16. Following the initial termination of trade talks, Canadian Prime Minister Mark Carney stated that Ottawa was prepared to resume discussions once the Americans were ready4,13. Premier Ford of Ontario had also pledged to pause the advertising campaign starting the following Monday in an effort to facilitate the resumption of negotiations5,8,16. Despite the diplomatic efforts, the personal relationship between the two leaders appears to have soured12. Both Mr Trump and Mr Carney are scheduled to attend the Association of Southeast Asian Nations (ASEAN) summit in Malaysia5,12,16. However, Mr Trump told reporters travelling with him that he had no intention of meeting with the Canadian Prime Minister at the summit5,12,16.

Conclusion

The imposition of a new 10 per cent tariff on Canada, ostensibly in retaliation for a political advertisement, signals a new and highly politicised phase in the transatlantic trade conflict1,2,11. The dispute has moved beyond traditional economic grievances over steel, aluminium, and lumber, entering a realm where historical and cultural symbols are weaponised for political ends1,5,11. By invoking the legacy of Ronald Reagan, a figure revered within the Republican Party, the Ontario government sought to appeal directly to American free-trade sentiment9,10. Washington’s response, however, demonstrates a willingness to employ significant economic leverage to punish perceived political and diplomatic slights2,12. The immediate consequence is a further destabilisation of the North American economic relationship, with businesses in both countries facing increased uncertainty and costs13,16. More broadly, the episode underscores the fragility of international trade agreements, such as the USMCA, when subjected to the pressures of domestic political theatre and personal presidential ire5,12. The path to de-escalation remains unclear, especially with the US Supreme Court set to review the legality of the President’s tariff authority, ensuring that trade policy will remain a central and volatile issue in the coming months5,13.

References

  1. Trump hikes tariff on Canada imports by 10% for not pulling down Ronald Reagan ad criticisng tariffs sooner | Today News - Mint

    Supports the core facts of the 10% tariff increase, the date, the reason (Reagan ad), and Trump's 'fraud' and 'hostile act' claims, including the quote about Reagan loving tariffs.

  2. Trump hikes tariffs on Canada by another 10% in response to Ontario's anti-tariff ad

    Confirms the 10% increase, the source of the ad (Ontario), the 'hostile act' description, the airing during the World Series, and the existing 35% tariff rate.

  3. US raises tariffs on Canada: What's in the Regan ad that angered Donald Trump? All you need to know - The Times of India

    Provides details on the ad's content, the source (Ontario), and the context of Reagan's original address (Camp David, Japan tariffs).

  4. Donald Trump slaps an additional 10% tariff on Canadian imports - Hindustan Times

    Confirms the 10% increase, the termination of trade talks, the Reagan Foundation's statement on misrepresentation, Canada's retaliatory tariffs, and PM Carney's readiness to resume talks.

  5. Trump to raise Canada tariffs by 10% | Supply Chain Dive

    Details the existing 35% levy, the ad's content (1987 speech, free trade quotes), the Reagan Foundation's protest, the termination of trade talks, the Supreme Court allegation, and the diplomatic freeze (ASEAN summit, no meeting with Carney).

  6. Trump says all Canada trade talks 'terminated' over ad criticising tariffs - The Guardian

    Confirms the termination of trade talks, the ad's source (Ontario), the specific quote ('trade barriers hurt every American worker'), the context of Reagan's 1987 speech (Japan tariffs), and the impact on Ontario's industries.

  7. Trump says increasing tariffs on Canada by 10% over 'fraud' ad - The Economic Times

    Supports the 10% tariff hike, the 'hostile act' claim, the use of the 1987 radio address, the USMCA's tariff-free coverage (85%), and the impact on Canadian industries.

  8. Canadians pull Reagan advertisement after furious Trump halts trade talks - Al Jazeera

    Confirms Ontario's Premier Ford's decision to pause the ad on Monday, the continued airing during the World Series, the quote about 'fierce trade wars,' and the ad's goal to initiate a conversation.

  9. Trump says he'll raise Canada tariff by 10% after Reagan ad - The Japan Times

    Supports the 10% increase, the ad's role in roiling the bilateral trade relationship, and the suspension of trade negotiations.

  10. US and Canada spar over ad of Reagan denouncing tariffs that led to derailed trade talks: Ontario premier says he plans to run ad featuring speech that sparked Trump's ire again during World Series but campaign will end Monday

    Confirms the ad's source (Ontario), the specific quote ('trade barriers hurt every American worker'), the Reagan Foundation's criticism, and the ad's goal to reach US audiences.

  11. Trump raises tariffs on Canada by 10% over "hostile" Reagan ad - Roya News

    Supports the 10% increase, the 'hostile act' claim, the termination of talks, the specific quotes used in the ad, the World Series broadcast, and the Supreme Court hearing date (November 5).

  12. Trump threatens Canada with 10% extra import tax over anti-tariffs ad | KGOU - Oklahoma's NPR Source

    Confirms the 10% hike, the World Series broadcast, the 'hostile act' claim, the existing 50% steel/aluminium tariffs, the USMCA review, and Trump's refusal to meet Carney at the ASEAN summit.

  13. Trump Says He'll Raise Canada Tariff By 10% After Reagan Ad - NDTV Profit

    Supports the 10% increase, the USMCA exemption details, the Canadian Chamber of Commerce quote on tariffs being a 'tax on America first,' and the impact on Ontario's industries.

  14. Trump says he will boost Canada tariffs over Reagan ad | InsideTrade.com

    Confirms the 10% increase and includes Trump's quote that Reagan 'LOVED Tariffs for purposes of National Security and the Economy.'

  15. Trump slaps Canada with extra 10% tariff over 'fraudulent' Reagan advertisement: 'Hostile act' - Fox Business

    Supports the 'fraudulent advertisement' and 'hostile act' claims, the timing during the World Series, and the allegation that the ad was intended to influence the Supreme Court.

  16. Trump raises tariffs on Canada by 10% in retaliation for anti-tariff TV ad - The Guardian

    Confirms the 10% increase, the ad's source (Ontario), the specific quote ('trade barriers hurt every American worker'), the Reagan Foundation's statement, the World Series broadcast, the existing 35% and 50% tariffs, and the diplomatic situation (ASEAN, no meeting).