US President Donald Trump has announced that he is increasing tariffs on goods imported from Canada by 10 percent. The decision came after the Ontario government aired an ad that used the words of former U.S. President Ronald Reagan, which said, “Tariffs harm every American.”
Trump called the ad on social media a “hoax” and lashed out at Canadian officials for not removing the ad before the World Series baseball championship.
Canadian Prime Minister Mark Carney responded by saying that Canada was ready to build on the progress made in trade negotiations with the United States, but at the same time it was expanding trade relations with other countries.
The U.S. has already imposed 35 percent tariffs on Canadian goods, though most products are exempt under a free trade agreement. In addition, 50 percent additional tariffs have been imposed on metals and 25 percent on vehicles.
During his trip to Asia, Trump said he was “increasing tariffs on Canada by another 10 percent.” According to economists, the burden of tariffs falls on importers, not exporters.
Seventy-five percent of Canada’s exports go to the United States, and the province of Ontario is considered the hub of the country’s auto industry.
Mark Carney, who is attending the ASEAN summit, said he was ready to continue dialogue with the United States. “We always prioritize the interests of Canadian workers and their families in these negotiations. “
He said the government would present a “major budget” in the coming weeks that would include long-term investment for Canada. At the same time, he made it clear that Canada is “diversifying its trade relationships” and entering into new agreements with several ASEAN countries.
Canadian Trade Minister Dominic LeBlanc also said progress has been made in constructive dialogue with the United States and that “direct contact is the best way forward.”
Trump said he had no plans to meet with his Canadian counterpart during his visit to Malaysia.
The controversy intensified when Ontario Premier Doug Ford announced Friday that he was temporarily halting the Reagan ad to allow trade negotiations to resume. However, he said the ad will continue to air during the World Series this week.
Trump immediately responded, saying the ad “should have been removed immediately.” A Ford spokesman confirmed Friday’s statement.
The ad, sponsored by the Ontario government, is based on excerpts from Reagan’s 1987 radio address, in which he said that “tariffs harm every American.”
