Welcome back, listeners, to Canada Tariff News and Tracker for October 27, 2025. Today’s big story is the deepening rift between the United States and Canada after President Donald Trump imposed an unexpected additional 10 percent tariff on Canadian products, pushing total tariff rates to new highs just as businesses and governments were bracing for more stability.
Trump’s action came less than 24 hours after he abruptly called off all active trade negotiations with Canada, a retaliatory move aimed specifically at a $75 million anti-tariff television ad campaign spearheaded by Ontario and broadcast widely across U.S. networks, including high-visibility slots during the World Series. The ads featured clips of Ronald Reagan criticizing tariffs and were quickly condemned by Trump on his Truth Social account as “fake” and unauthorized by the Reagan Foundation. According to WRVO, in his post, Trump declared tariffs “very important to the national security and economy of the U.S.” and announced that all trade dialogs with Canada were “terminated” as a result of what he termed “egregious behavior” by Canada.
The recent tariff hike means that, while the U.S. maintains a base tariff rate of 35 percent, most Canadian products had until now benefited from exemptions. This new 10 percent hike, targeting sectors not specified by the White House, directly impacts the competitiveness of Canadian exports and has left Ottawa scrambling to reassess its trade strategy according to Supply Chain Brain. With the U.S. being Canada’s largest trading partner—and Canada reciprocally serving as the top export customer for over 30 American states—the economic implications for manufacturers, farmers, and exporters on both sides of the border are significant.
Canadian Prime Minister Mark Carney, questioned at the ASEAN Summit in Kuala Lumpur and in coverage by DRM News, responded to the U.S. moves with a restrained, almost stoic tone. Carney noted that “twists and turns are part of any high-stakes negotiation” and stressed that Canada is ready to resume talks whenever the U.S. chooses to re-engage. Carney reiterated Canada’s value as a supplier of essential U.S. goods, specifically mentioning aluminum, and highlighted the importance of diversification through deals in Asia as trade turbulence with the U.S. continues.
While Ontario Premier Doug Ford has agreed to eventually pull the controversial ads, many Canadian officials and local leaders stand by the campaign, framing it as a wake-up call to American consumers and a necessary assertion against what they see as damaging protectionist policies.
To summarize for our listeners, as of this week, Canada is facing an additional 10 percent tariff on exports to the United States, negotiations have broken down, and both sides appear dug in as political tensions rise. Canadian leadership is signaling calm and readiness, but businesses from coast to coast are left in limbo, waiting to see if and when talks might resume.
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