US President Donald Trump announced on Saturday that he is increasing tariffs on Canadian goods by an additional 10 per cent, in response to a Canadian advertisement featuring late US leader Ronald Reagan.Also Read | ‘Cheated and got caught!’ Trump again blasts Canada over ‘fake Reagan ad’; cites national security The move comes just two days after Trump “ended” all trade talks with Canada, criticising what he called a “fake” ad campaign.On his Truth Social platform, Trump wrote: “Their advertisement was to be taken down immediately, but they let it run last night during the World Series, knowing that it was a fraud. 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.” The ad, produced by the Canadian province of Ontario, used quotes from a 1987 radio address by Reagan in which he warned that high tariffs could provoke retaliation from other countries and trigger trade wars. The quotes match the transcript available on the Ronald Reagan Presidential Library’s website.The Reagan Foundation criticised the ad, stating that it used “selective audio and video” and is reviewing potential legal options. Also Read | Reagan ad: Canada to halt ‘anti-tariff’ commercial in hope of resuming talks with US; claims Trump ‘wasn’t too happy’ Trump’s sectoral tariffs on steel, aluminum, and autos have already affected Canada’s economy, causing job losses and straining businesses. Despite this, the United States and Canada continue to operate under the USMCA trade agreement, which allows roughly 85 per cent of cross-border trade to remain tariff-free.Canadian Prime Minister Mark Carney, speaking on Wednesday, described the US tariffs as “levels last seen during the Great Depression” and stressed that Canada’s economic strategy would need significant adjustments, a process that would take time and sacrifices.