Trump imposes new 10% tariffs on Canada — Here's why, what goods are on the list, and PM Carney's reaction

Two days after halting trade talks with Canada over an allegedly “misleading and fraud” advertisement using late, former United States President Ronald Reagan, current chief Donald Trump on October 26 imposed an additional 10 per cent tariff on the northern neighbour “above what they are paying now”.

The fallout came after a TV advertisement by the province of Ontario featured the late US President Ronald Reagan criticising tariffs. The ad was being aired in the US as well and Ontario Premier Doug Ford had said he would stop the broadcast after the weekend, as per a Bloomberg report.

What did Donald Trump say? Why new tariffs on Canada?

In a post on his social media platform Truth Social, Donald Trump accused Canada of using parts of Ronald Reagan's speech without permission and called the ad a “fraud” based on “selective audio and video” of the late leader.

“Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs. The Reagan Foundation said that they, ‘created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address,’ and ‘did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter’,” Trump wrote in his post on October 26.

"The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their “rescue” on Tariffs that they have used for years to hurt the United States. Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!). Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn’t! 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,” Trump alleged.

He added, “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.”

How did Canada PM Mark Carney react?

Speaking to reporters before the Association of Southeast Asian Nations (ASEAN) meeting in Malaysia, Canadian Prime Minister Mark Carney's reaction to the additional tariffs was brief and dry, according to a Bloomberg report.

Carney said that his government is ready to resume talks with the US any time. He told reporters, “We can’t control the trade policy of the United States. Canada stands ready to build on the progress that we had been making in our negotiations or discussions with our American counterparts.”

He also stressed that US-Canada trade talks are the “sole responsibility” of the federal government, and said such negotiations are “the best way forward.”

What and how much tariffs is Canada facing now?

• Canada currently faces a US base tariff of 35 per cent which does not apply to most goods as they come under the US-Mexico-Canada Agreement.
• The US-Mexico-Canada Agreement has an exemption for products and shipments made within the rules of the framework, Bloomberg report said.
• Notably, Donald Trump has not specified if the additional 10 per cent tariff hike would keep that exemption or be imposed separately.
• Besides the 35 per cent base tariff, the US also imposes 50 per cent tariffs on steel and aluminium products from Canada.
• Further, a separate 25 per cent tariff is also imposed on vehicle imports into the US, including Canadian autos, with only a partial exemption for Canadian-made cars and trucks.

(With inputs from Agencies)