Trump Slaps Fresh 10% Tariff on Canada After TV Ad Spat

The decision comes just days after trade talks between the two neighbours collapsed and appears to be a direct retaliation against a television advertisement aired by the Canadian province of Ontario. The ad, which ran during the high-profile World Series baseball championship, featured a quote from former President Ronald Reagan, criticising tariffs as harmful to Americans.

Trump took to social media to vent his fury, labelling the commercial a "fake ad" that misrepresented Reagan's true pro-tariff stance. He claimed Canada was "caught red-handed" and criticised officials for not pulling the advertisement immediately.

The economic implications for Canada are significant. With over 75% of its exports, valued at billions of dollars daily, destined for the United States, these new tariffs are a major blow. Analysts from JP Morgan suggest the measures could reduce Canada's GDP by 1.2% over the next five years.

Currently, it remains unclear what legal authority President Trump will use to impose the new 10% tariff or when it will officially take effect, as the White House has yet to provide specific details. The situation leaves the long-standing and crucial trade relationship between the US and Canada on increasingly shaky ground.