In a watershed moment in U.S.-Canada trade relations, President Donald Trump disclosed plans to impose a 10% tariff hike on all Canadian imports. This decision is a direct reaction to a negative proclamation by the Ontario government. The ad features excerpts from a 1987 speech given by former President Ronald Reagan. And yet, that’s when this new ad aired—during Game 1 of the Major League Baseball World Series. In this thrilling tournament debut the Toronto Blue Jays faced off against the Los Angeles Dodgers.
The advertisement, which highlighted Reagan’s assertion that “trade barriers hurt every American worker,” prompted swift backlash from the Trump administration. In his announcement, Trump expressed his disapproval of the ad’s content and timing, 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 further elaborated on his decision to increase tariffs by saying, “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 increase on tariffs comes after a protracted time of tumultuous relations between the two countries. By the middle of this year, Canada’s Prime Minister had lifted most retaliatory, counter-tariff tariffs on U.S. imports. In August, the U.S. retaliated with a 35% tariff on Canadian imports. This effort specifically focused on items not covered by the United States-Mexico-Canada Agreement (USMCA). Ontario’s latest ad campaign has successfully sunk months of ongoing trade negotiations. In light of this, Trump has chosen to call off negotiations with Canadian authorities.
The Ontario Premier Doug Ford took immediate action following the announcement, suspending the ad campaign after discussions with Mark Carney. The suspension is a direct shot at the re-opening of transpacific trade negotiations with the United States. For his part, Trump has already signaled that he does not intend to meet with Carney while at the ASEAN summit in Malaysia.
Candace Laing, President of the Canadian Chamber of Commerce joined in on the action. She continued, “Tariffs at any level are still a tax on America first, then North American competitiveness as a whole.” We sincerely hope this threat of escalation can be de-escalated through diplomatic channels and continued negotiation. CUSMA spells a North America where companies can thrive. A well-functioning trade — unlimited free trade zone — is essential for the success of both our economies.
Trump’s comments are indicative of his administration’s continued resolve to fight against what he believes are unjust trade practices. He argued that the new protectionist measure would `… make America great again’. It would put the United States in a much stronger position to protect itself from these harmful and excessive Canadian and other foreign tariffs!
Like America, both nations are already actively charting this complicated new trade world. We’ll find out soon how these tariffs affect their already clenched economic ties and cross-border commerce. What these continuing tensions illustrate is both the fragility of international agreements and the power of public messaging in affecting the tenor of diplomatic relations.