Trump Threatens New Tariffs as Canada Claims Trade Talks Solely Its Duty

UPDATE: In a dramatic escalation of trade tensions, U.S. President Donald Trump has threatened to impose a 10 percent tariff on Canada, prompting Prime Minister Mark Carney to assert the “sole responsibility” of Canada in handling trade discussions with the U.S. This urgent development comes as Trump reacts to an Ontario government advertisement that aired during the World Series, which he labeled a “FRAUD.”

Carney, addressing reporters in Malaysia at the ASEAN leaders summit, emphasized that the Canadian government is committed to engaging in productive trade talks. “It is the sole responsibility of the government of Canada to have those discussions with the United States, and it’s the best way forward,” he stated on Sunday.

Trump’s latest threat follows his posting on Truth Social, where he condemned the Ontario ad featuring clips of former president Ronald Reagan. The ad, which promotes themes of “Free and fair trade,” reportedly aired without permission from the Ronald Reagan Presidential Foundation, which claimed it misrepresents Reagan’s views.

The timeline for the implementation of the proposed tariffs remains unclear, raising concerns for Canadian businesses. As Trump has cut off all trade talks with Canada, both leaders are expected to be in close proximity this week during the Asia Pacific Economic Cooperation (APEC) forum in South Korea, which could influence future discussions.

Carney did not specifically address the tariffs while in Malaysia but reiterated Canada’s commitment to international trade. “We respect trade agreements and the rule of law,” he remarked, pointing out the importance of reliable partnerships in today’s competitive environment.

In a broader context, Carney outlined Canada’s ambitions to double non-U.S. exports in the coming decade, along with plans to quadruple defense spending over the next four years. He also touted a recent trade agreement with Indonesia, marking a significant step in building relations with ASEAN countries.

Looking ahead, both Carney and Philippines President Ferdinand Marcos Jr. have agreed to push for a bilateral agreement by 2026, indicating Canada’s strategic focus on expanding its trade landscape beyond the U.S.

As tensions escalate, the implications of Trump’s tariff threats could have significant repercussions for Canadian businesses and consumers. The urgency of the situation highlights the delicate balance of international trade and the need for effective dialogue between nations.

Stay tuned for further updates as this developing story unfolds.