Economy

Trump’s Tariff Threat: How the Canada Dispute Could Impact Supreme Court’s Decision

Trump proposed 10% tariffs on Canada after an ad criticizing his tariffs. He won’t meet with Canadian PM.

October 27, 2025, 12:33 PM

Close-up portrait of President Donald Trump in a blue suit and red tie, speaking or listening intently during a meeting.

This close-up portrait shows President Donald Trump in the Oval Office at the White House, Washington, DC, during a meeting with foreign ministers on June 27, 2025. By Brian Jason / Shutterstock.com.

Executive Summary

President Donald Trump announced a proposed 10% tariff increase on Canadian imports, accusing Canada’s Ontario province of a “hostile act” for broadcasting an anti-tariff advertisement.

Trump characterized the Ontario-funded ad, which featured former President Ronald Reagan criticizing import taxes, as a “FRAUD” and claimed Reagan “LOVED Tariffs for purposes of National Security and the Economy.”

The tariff proposal escalates U.S.-Canada trade tensions and coincides with the U.S. Supreme Court’s review of the legality of Trump’s broader tariff powers, with Trump stating he has “no intention of meeting” Canadian Prime Minister Mark Carney.

The Story So Far

President Trump’s proposed 10% tariff increase on Canadian imports marks an escalation of existing trade tensions between the two nations, directly stemming from an advertisement funded by Canada’s Ontario province. President Trump deemed the ad, which featured former President Ronald Reagan criticizing import taxes, a “hostile act” and an attempt to interfere with a U.S. Supreme Court review of the legality of his broader tariff powers.

Why This Matters

President Trump’s proposed 10% tariff increase on Canadian imports, directly in response to a critical ad, significantly escalates trade tensions between the two nations and signals a further deterioration of diplomatic relations, highlighted by his refusal to meet Prime Minister Carney. This aggressive action also provides a strong argument for the U.S. Supreme Court, which is currently reviewing his broader tariff authority, to potentially rein in future presidential power over tariffs.

Who Thinks What?

President Donald Trump accused Canada’s Ontario province of a “hostile act” for broadcasting an anti-tariff advertisement, proposing a 10% tariff increase on Canadian imports and claiming Ronald Reagan supported tariffs for national security and economic purposes.

Ontario Province, through an advertisement featuring former President Ronald Reagan criticizing import taxes, expressed skepticism towards tariffs, with Premier Doug Ford indicating the ad would be suspended after the weekend.

The Wall Street Journal suggested that President Trump’s “tantrum against Canada” provides a “good argument for the justices to rein in his tariff power,” noting that Reagan was generally “wary of tariffs” and that Trump is acting like a “king” regarding his tariff authority.

President Donald Trump announced on Saturday a proposed 10% tariff increase on Canadian imports, accusing Canada’s Ontario province of a “hostile act” for broadcasting a television advertisement critical of tariffs. The move escalates trade tensions between the two nations, coming after Trump claimed the ad sought to interfere with a U.S. Supreme Court decision on the legality of his broad tariff powers.

Trade Tensions Escalating

Trump stated in a social media post that the Ontario-funded ad, which featured former President Ronald Reagan criticizing import taxes, was a “FRAUD” and should have been removed immediately after his initial objections on Thursday. He asserted that “Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy,” despite the ad’s portrayal of Reagan’s skepticism towards such measures.

Ontario Premier Doug Ford had indicated on Friday that the ad would be suspended after the weekend. However, Treasury Secretary Scott Bessent characterized the ad as “a kind of propaganda against U.S. citizens” during an appearance on NBC’s “Meet the Press,” questioning its intent beyond swaying public opinion.

Legal and Diplomatic Implications

The Associated Press noted ambiguity regarding the specific legal authority Trump would invoke to impose these additional tariffs or which goods would be affected. The news agency also pointed out that Reagan was generally “wary of tariffs” and had used the 1987 address featured in Ontario’s ad to argue against them.

The U.S. Supreme Court is slated to review lower court rulings that deemed Trump’s broader tariffs unlawful. An editorial in The Wall Street Journal suggested that while the court is unlikely to be swayed by external factors, Trump’s “tantrum against Canada” provides a “good argument for the justices to rein in his tariff power.” The editorial further commented that Trump “claims he’s not ‘a king,’ but on tariffs he is acting like one.”

Both President Trump and Canadian Prime Minister Mark Carney are scheduled to attend the Association of Southeast Asian Nations summit in Malaysia this week. Despite their shared attendance, Trump informed reporters that he had “no intention of meeting Carney there.”

Outlook

The proposed tariff hike and the ongoing dispute over the Canadian ad underscore persistent trade frictions between the United States and Canada, alongside the broader legal challenges to presidential tariff authority currently before the Supreme Court.