Trump halts trade talks, adds 10% tariff on Canada over Reagan TV ad

Trade talks with the United States have come to a halt – which poses a threat to the economy here in Canada.

The latest from Donald Trump tonight is that he would like to keep things the way they are now, with U.S. tariffs pushing up the price of Canadian goods going to the States.

After cutting off Canada-U.S. trade talks because he’s upset over a television ad from Ontario, President Trump is saying he doesn’t want to restart any talks.

And today Trump went on Truth Social to announce that he’s increasing his tariffs on Canada by ten per cent because of the ad, even though Ontario Premier Doug Ford is pulling the commercials.

Travelling on Air Force One, Trump was asked what Canada has to do to get trade talks back on track. He didn’t hold out any hope.

“Really I don’t think there’s much they could do. I’d just assume leave it the way it is. If they leave it the way it is, it’s very good for us,” said Trump.

Trump accuses Canada of “cheating” by using an almost 40-year-old speech from President Ronald Reagan in the television commercial.

After talking with Prime Minister Mark Carney, Premier Ford said Ontario will pull the ad after this weekend’s World Series games. But Trump says the damage is done.

“Well Canada lied. I mean, what they did was terrible. They made up a fake statement by President Reagan. Reagan was a big supporter of tariffs when needed, and we need tariffs for national security,” said Trump.

But Ford has some support for his Reagan TV commercial.

B.C. Premier David Eby says, “Americans need to hear how tariffs raise prices.” He says his province is “making ads to defend British Columbia and Canada’s forestry workers.”

But Alberta Premier Danielle Smith has a different view, saying she’s “pleased to see Ontario’s ad campaign is being suspended” and Ottawa should “continue negotiating to resolve these tariff issues.”

WATCH MORE: Why did Trump end trade talks with Canada over Ontario’s ad campaign?

As it stands, current U.S. tariffs include 35 per cent on most Canadian goods outside the Canada-U.S.-Mexico trade agreement, as well as 50 per cent on Canadian steel and aluminum, and 35 per cent on softwood lumber

And now, an additional 10 per cent because of what he calls a hostile act by Canada.

On Truth Social, Trump says he wanted the Reagan ad “taken down, immediately.”

But Canada “let it run last night during the World Series, knowing that it was a fraud” – calling it a “serious misrepresentation of the facts.”

With Carney trying to build new trade relationships in Asia and other regions, McMaster University Economist Colin Mang says Canada could be in for a tough adjustment if the U.S. tariffs stay.

“Canadian auto manufactures, Canadian steel producers are going to need to redesign their production processes. We’re going to need to see a refocus towards the Canadian market … unfortunately what it does mean is that job losses are likely to become permanent. The industry will be a bit smaller, but it will adapt and it will serve the Canadian market,” said Mang.

“If the Blue Jays win, I’ll send you some of Ontario’s finest maple syrup,” said Ford.

Ford also got support in a World Series bet with California Governor Gavin Newsom, who still got in a dig about the LCBO removing American wine and other alcohol.

“And can you do me a favour? Do you think you can put it on the liquor store shelves?” said Newsom.

“I don’t think so buddy. Talk to your friend in the Oval Office,” said Ford.

Carney and Trump were both flying to a summit in Malaysia today. Trump said he has no intention of meeting with Carney there. Carney’s office says there is no meeting with Trump planned, but he hopes to have lots of meetings with Southeast Asian leaders about expanded trade.

WATCH MORE: Ford says Ontario will halt anti-tariff ad in U.S. to restart trade talks