Trump raises tariffs on Canadian goods in response to Reagan advert

BBC
BBC
2M ago
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President Trump announced a 10% increase in tariffs on Canadian imports following an anti-tariff advertisement featuring Ronald Reagan. This escalation complicates ongoing trade negotiations between the US and Canada.
Trump raises tariffs on Canadian goods in response to Reagan advert
A What happened
In a recent escalation of trade tensions, President Donald Trump announced a 10% increase in tariffs on goods imported from Canada, citing an anti-tariff advertisement featuring former President Ronald Reagan as the catalyst. The advertisement, sponsored by the Ontario government, was criticized by Trump as a 'fraud' and a hostile act, particularly as it aired during the World Series. This tariff increase follows Trump's withdrawal from trade negotiations with Canada, which has yet to reach an agreement with the US on tariffs. Ontario Premier Doug Ford indicated that the advertisement campaign would be paused to allow for the resumption of trade talks, although it continued to run during key sporting events. The ongoing tariff disputes have significant implications, as three-quarters of Canadian exports are directed to the US, with Ontario being a major hub for automobile manufacturing. The situation remains tense as both leaders prepare for an upcoming summit in Malaysia.

Key insights

  • 1

    Tariff Increase: Trump's 10% tariff hike complicates US-Canada trade relations.

  • 2

    Reagan Advertisement: The Ontario ad featuring Reagan sparked Trump's aggressive response.

  • 3

    Trade Negotiations: Ongoing trade talks between the US and Canada remain stalled.

Takeaways

The increase in tariffs by President Trump highlights the fragile state of US-Canada trade relations, exacerbated by political advertising and ongoing negotiations. The situation underscores the complexities of international trade amidst domestic political strategies.

Topics

Business & Markets Economy

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