Trump’s tariff hike seen as political ‘show’ amid falling poll numbers

Trade talks between Canada and the U.S. remain on hold tonight as an anti-tariff ad featuring the voice of former president Ronald Reagan, which aired last week just in time for the World Series championship, resulted in an additional 10 per cent tariff on Canadian goods. This has put a hold on the ongoing trade talks between the two countries.

Prime Minister Mark Carney is in Malaysia for the Association of Southeast Asian Nations leader’s summit.

Carney told leaders Canada values a system that is based on rules while respecting trade agreements and the rule of law — a comment many say is in contrast to U.S. President Donald Trump who announced a 10 per cent increase in tariffs on Canada.

The increase comes in retaliation for an Ontario anti-tariff TV ad that featured a national radio address from former president Reagan.

“They lied. I mean, it was a fraud what they did,” said Trump.

Despite Trump’s remarks, Carney said Canada is ready to build on the progress his government has been making in their negotiations with their American counterparts.

“It is the sole responsibility of the government of Canada to have those discussions with the United States and it’s the best way forward. As I say, we stand ready,” said Carney.

Both Carney and Trump are in Kuala Lumpur for the summit, but do not currently have a plan to pick up where they left off.

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

Today Carney warned trade flows are likely to shift away from the U.S. for a period of time – and that it will make it more expensive to trade with the United States.

Trade talks with Canada were terminated on Oct. 23.

Political Analyst Stefan Dolgert thinks there won’t be any permanent damage to the ongoing trade talks between the two countries that began early this month.

“At worst, it’s, you know, a bump, a blip in these negotiations. But Trump is so fundamentally erratic and unpredictable in terms of what is really gonna offend his ego,” said Dolgert.

The U.S. president’s announcement of an additional 10 per cent tariff on Canadian goods, Dolgert says, is Trump putting on another show to try to distract Americans from some trouble on the horizon.

“We have to bear in mind that he is increasingly in a weak position. His poll numbers are getting worse and worse. The American economy is getting worse regardless of what the stock market is doing immediately. Inflation is growing, people are becoming increasingly dissatisfied with his job as protector of the American economy, even those people who were supporting him,” says Dolgert.

The new tariff announcement means the general tariff on Canada is now up to 45 per cent.

No word yet on when the increase would take effect.

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