Washington: US President Donald Trump announced an additional 10 percent increase in tariffs on Canadian goods, attributing the decision to an ad campaign by the Canadian province of Ontario that allegedly misrepresented former US president Ronald Reagan's stance on tariffs. The controversy has sparked further tension between the two nations.

According to United Nations, the announcement followed Trump's decision to halt all trade negotiations with Canada after the ad aired. The campaign, which was broadcast during the World Series, was labeled fraudulent by Trump, who criticized its content on his Truth Social platform while en route to Asia for diplomatic meetings.

The Ronald Reagan Foundation has expressed concerns over the use of selective audio and video in the advertisement, stating on X that it is considering legal action. Meanwhile, the ongoing World Series, featuring the Toronto Blue Jays and the Los Angeles Dodgers, has added another layer to the dispute, with the Blue Jays defeating the Dodgers 11-4 in the opening game.

Ontario has agreed to withdraw the contentious ad on Monday in an effort to resume negotiations, though it plans to air it again during the second game of the series. The current situation has exacerbated the impact of existing US tariffs on Canadian industries, including steel, aluminum, and automotive sectors.

Despite the friction, the US and Canada continue to operate under the USMCA trade agreement, which maintains tariff-free trade for the majority of cross-border transactions. However, Canadian Prime Minister Mark Carney has expressed concerns over rising US tariffs, comparing them to those of the Great Depression era and calling for significant changes to Canada's economic strategy.

Both Trump and Carney are scheduled to attend an APEC dinner in South Korea, though Trump has indicated that he does not plan to engage with Carney during the event.