United States to Increase Tariffs on Canada by 10%

2 minutes

The United States will increase tariffs on Canada by 10% in response to the continued airing of an advertisement that features Ronald Reagan speaking negatively about tariffs. President Donald Trump previously said that the United States is ending trade negotiations between the countries over the ad, stating that it is misleading.

Canada flag

In a Truth Social post on 25 October 2025, Trump stated that "Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan's Speech on Tariffs." Trump said the advertisement misrepresents Reagan's speech.

Trump stated that Canada aired the advertisement to include the United States Supreme Court in the upcoming tariff-related cases. "The sole purpose of this FRAUD was Canada's hope that the United States Supreme Court will come to their 'rescue' on Tariffs that they have used for years to hurt the United States. Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!)."

Trump stated that the advertisement was to be stopped immediately but Canada "let it run last night during the World Series, knowing that it was a FRAUD."

Trump said he was increasing tariffs "[b]ecause of their serious misrepresentation of the facts, and hostile act."

The Supreme Court is scheduled to hear the tariff-related cases Donald J. Trump, President of the United States, et al. v. V.O.S. Selections, Inc., et al. (No. 25-250) and Learning Resources, Inc., et al. v. Donald J. Trump, President of the United States, et al. (No. 24-1287).

Imports to the United States from Canada that do not have preferential treatment under the United States-Mexico-Canada Agreement (USMCA) are generally subject to 35% tariffs.

Report from the IBFD Newsroom. Follow our reporting on this via our daily Tax News Service (subscribers only).

Related

Tax News
Other Taxes, Specific Sectors, Tariffs

United States to Remove Tariffs on UK Pharmaceuticals, Suspend Section 301 Actions under New Trade Deal

The United States will exempt UK-origin pharmaceuticals, pharmaceutical ingredients, and medical technology from section 232 tariffs and suspend future section 301 actions targeting UK pharmaceutical pricing practices for the duration of President Trump's term, under a new bilateral agreement in principal announced on 1 December 2025.The Office of the United States Trade Representative (USTR), together with the Departments of Commerce and Health and Human Services, confirmed in a 1 December 2025 news release that the tariff exemptions form part of a broader US–UK Economic Prosperity Deal (EPD). The agreement aims to address long-standing imbalances in pharmaceutical trade and foster innovation and investment in both countries.
2 minutes

Mexico Adopts 2026 Economic Package Containing Various Tax Measures

Mexico has adopted the Economic Package for fiscal year 2026 which was submitted earlier this year. The final version includes additional measures beyond those proposed in the initial draft. For previous reporting, see Economic Package for 2026: Executive Branch Proposes Amendments to Tax Incentives, New Obligations for Digital Platforms (12 September 2025).The main changes concern measures related to excise taxes, real-time access to digital platforms information, and tax incentives for the insurance sector. They are as follows:
2 minutes
Tax News
Tariffs, Tax Treaties

US Begins Investigation Into China's Compliance With Phase One Trade Agreement

The Office of the US Trade Representative (USTR) has begun an investigation into China's compliance with the Phase One economic and trade agreement. The USTR began the investigation on 24 October 2025, after finding an "apparent failure to comply" with the terms of the agreement.
2 minutes