US President Donald Trump has announced a 10 percent tariff hike on Canadian goods, in response to a controversial Canadian ad featuring former President Ronald Reagan.

In a post on his social media account 'Truth Social' on Saturday night (October 25), Trump said, "Canada has run a deceptive ad misrepresenting Ronald Reagan's speech on tariffs. The ad misrepresents the former president's radio speech, without even asking permission."

He also wrote, "Reagan always supported tariffs for the sake of America's security and economy. But Canada has deliberately distorted the issue. The ad was supposed to be removed quickly, but it was aired. That is why I have decided to impose an additional 10 percent tariff on Canada."

Earlier on Thursday, Trump also canceled all trade talks with Canada. At the time, he wrote on Truth Social, "Canada ran an ad that portrayed Reagan as anti-tariff. This is false and disrespectful. All trade talks with Canada have been canceled due to their disgusting behavior."

Trump previously imposed a 35 percent tariff on Canadian goods, but some products covered by the USMCA (United States-Mexico-Canada-Free Trade Agreement) are exempt.

Incidentally, outside of the USMCA agreement signed during Trump's first term, sector-specific tariffs have also been imposed on Canadian products—including a 50 percent tariff on metals and a 25 percent tariff on automobiles.