Washington, Oct. 25 (IANS) – U.S. President Donald Trump has announced a 10% increase in tariffs on goods imported from Canada, citing what he called a “fraudulent” advertisement aired by Ontario’s government. The announcement came on Saturday, Oct. 25, during Trump’s ongoing trip to Asia, where he is visiting Malaysia, Japan, and South Korea.

Trump criticized a TV ad released by Ontario, which featured former President Ronald Reagan commenting on tariffs. According to Trump, the ad misrepresented Reagan’s remarks and suggested incorrectly that Reagan opposed tariffs. In a Truth Social post, Trump stated, “The ad misrepresents the Presidential Radio Address… Ronald Reagan loved tariffs for purposes of national security and the economy, but Canada said he didn’t!”

The ad had been scheduled to air during Games 1 and 2 of the World Series on Oct. 24 and 25, despite Ontario Premier Doug Ford agreeing to pause it on Oct. 27. Trump claimed the ad’s airing was a “hostile act” and said it justified the tariff increase, which would be “over and above what they’re paying now.”

This latest move escalates existing trade tensions between the United States and Canada. Since Aug. 1, 2025, Canadian imports not covered by the Canada-United States-Mexico Agreement (CUSMA) have already faced 35% tariffs. Canada is the U.S.’s second-largest trading partner, accounting for 12.5% of all U.S. trade in July 2025, behind only Mexico. In 2024, Canada was the top destination for U.S. exports and the third-largest source of imports. Daily trade across the border in 2023 averaged $2.7 billion, with Canada serving as the largest foreign supplier of energy to the U.S.

Canadian Prime Minister Mark Carney responded that Canada remains ready to resume trade negotiations with the U.S. However, Trump’s decision to hike tariffs came shortly after he terminated ongoing talks, signaling a hardening of his trade stance.

The move has drawn criticism from U.S. state leaders. New York Governor Kathy Hochul called the decision “impulsive and costly,” emphasizing the economic impact on businesses, farmers, and border communities. “Canada is our top trading partner… This administration’s decision to end talks simply because of an ad is petty, shortsighted, and harmful,” Hochul said.

Trump’s tariff announcement coincides with his six-day Asia tour, where he aims to negotiate a resolution to the ongoing trade war with China. His trip comes amid a 25-day U.S. government shutdown, during which Trump has also accepted a $130 million donation to pay U.S. military personnel affected by the funding lapse.

The tariff hike on Canada marks another escalation in the U.S. approach to international trade under Trump, reflecting his continued use of tariffs as leverage in diplomatic and economic negotiations. Analysts warn that higher tariffs may raise costs for American consumers, disrupt supply chains, and create uncertainty for businesses reliant on cross-border trade with Canada.