President Trump said on Saturday that the U.S. will add a new 10% tariff on Canada. The move follows an Ontario government ad campaign that used a 1987 radio clip of Ronald Reagan speaking about trade. Trump said the ad misrepresented Reagan’s views and was a hostile act toward the U.S.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The ad used Reagan’s words about tariffs and free trade. In the clip, Reagan said that tariffs can seem patriotic but often hurt workers and consumers. Trump said the ad twisted Reagan’s meaning and used his voice without permission. He also said the ad was meant to affect a coming Supreme Court hearing on U.S. tariffs.
Ontario Premier Doug Ford said on Friday that the province would pause the ad starting Monday. However, the ad still aired during the first game of the World Series. Trump posted on his social media platform that the ad should have been taken down at once.
Trade Impact and Market Outlook
At the moment, U.S. tariffs on Canada stand near 35%. Energy products face a 10% duty, but goods covered by the U.S.-Mexico-Canada Agreement enter the country without tariffs. Those exempt items make up about 85% of Canada’s exports to the U.S.
The new 10% charge is set to apply on top of current duties, although the White House has not said when it will start or which goods it will include. The added cost could raise prices on energy, cars, and farm products that move between the two countries.
Canadian Prime Minister Mark Carney said on Friday that Canada is ready to keep talks open. Trade Minister Dominic LeBlanc also said the government aims to build on recent progress with U.S. officials.
Next Steps for Both Sides
The U.S. and Canada have one of the largest trade links in the world, with nearly $762 billion in goods exchanged in 2024. Many companies depend on that flow, especially in energy, agriculture, and manufacturing. A higher tariff could slow cross-border trade and put upward pressure on prices in both countries. Carney and Trump are both expected to attend an Asia-Pacific meeting this week in South Korea. Talks there could ease tension or set the stage for new steps.
Using TipRanks’ Comparison Tool, we’ve compiled a short list of companies in the energy, cars, and farms sectors that may be affected by the new tariff increase.
