In a bold and politically charged move, President Donald Trump announced on Saturday, October 25, 2025, that the United States will raise tariffs on Canadian imports by an additional 10%, bringing some rates to as high as 35%. The decision, shared via Trump's Truth Social account, was made in retaliation for a provocative TV ad sponsored by the Ontario provincial government, which referenced Ronald Reagan's historic support for free trade.

Trump characterized the ad as a "fraud" and a "hostile act," accusing Canadian officials of attempting to influence U.S. judicial decisions surrounding trade. "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," Trump stated. He further alleged that the ad was designed to sway the U.S. Supreme Court amid ongoing disputes over tariff legality.

The ad featured archival footage of President Reagan condemning trade barriers, and was part of a broader public campaign by Ontario to promote open trade with the U.S. However, the Ronald Reagan Presidential Foundation & Institute said Ontario had neither requested nor received permission to use the late president's image or audio. The foundation denounced the use as "selective" and "misrepresentative," and is now reportedly considering legal action.

Following the backlash, Ontario Premier Doug Ford confirmed that the ad campaign would be suspended, effective Monday, following discussions with Canadian Prime Minister Mark Carney. The aim, Ford said, is to resume trade talks and prevent further escalation.

Trump's tariff hike marks the second major action against Canada in 2025, following a July executive order that raised certain import tariffs from 25% to 35%, impacting a wide array of sectors, including energy, lumber, and agricultural goods. The cumulative effect is expected to disrupt North American supply chains, especially in sectors like farm equipment, commodity trade, and fertilizer inputs-areas where U.S. agriculture is tightly interlinked with Canadian imports.

The Canadian Chamber of Commerce criticized the tariff hike, warning that "tariffs at any level remain a tax on America first, then North American competitiveness as a whole." Its president, Candace Laing, urged a return to diplomatic solutions, highlighting the importance of the Canada-U.S.-Mexico Agreement (CUSMA) in stabilizing economic relations.

The policy move further complicates trade dynamics as the U.S. heads into an election year and as supply chains continue recovering from inflationary shocks and geopolitical disruptions. Analysts warn that further retaliation from Canada could follow, potentially targeting key U.S. exports.

For U.S. agriculture professionals, the stakes are high. The added costs from these tariffs may ripple into input pricing, alter commodity export flows, and pressure cooperative purchasing agreements. The farm sector now watches closely for any exemptions or aid measures, particularly from the USDA or Congress, as fallout from the trade tensions intensifies.