President Trump Increases Tariffs on Canada by an Additional 10% - World Series "Advertisement" Sparks Controversy

1. What Happened—"10% Increase" with a Single Advertisement

On October 25, U.S. President Trump announced via a social media post that tariffs on imports from Canada would be increased by an additional 10% "on top of the current level." The trigger was an anti-tariff commercial aired by the Ontario government targeting the U.S., which was broadcast nationwide during the Major League World Series. The U.S. administration reacted by calling it a "distortion of facts" and "hostile act." At the time of the announcement, no specific implementation date or range of items was indicated. The Washington Post

2. Controversy Over "Reagan's Words"

The controversial commercial quoted Ronald Reagan's pro-free trade remarks from 1987, arguing against the harm of tariffs. The U.S. administration criticized the selective use of context. Ontario Premier Doug Ford, after consultations with the federal prime minister, announced a temporary halt "early next week," but the commercial continued to air during the World Series weekend. AP News

3. Legal Risks and the Shadow of the "Supreme Court"

The legal basis for the additional tariffs revolves around the interpretation of the International Emergency Economic Powers Act (IEEPA) and other trade laws. The U.S. Supreme Court is scheduled to hear arguments in early November regarding the extent of the president's broad tariff authority, and this "advertisement-triggered" move seems to have intensified just before judicial review. The announcement, with its unspecified scope and implementation date, adds further uncertainty for markets and businesses. The Washington Post

4. The 10% on Top of This Year's "Accumulation"

The year 2025 began with comprehensive tariffs (25% on many items), and by summer, tariffs on Canada, particularly on non-USMCA (formerly NAFTA) items, were raised to 35%. Sector-specific tariffs on steel and aluminum were also expanded, and separate measures were imposed on lumber products. The current "10% increase" could potentially be added on top of these existing tariff stacks. Reuters

5. Will Negotiations Stop?—Prime Minister Carney is Open to Resuming Talks, U.S. Side Denies Meeting

Trade negotiations were temporarily halted due to the commercial issue. Canadian Prime Minister Mark Carney is open to resuming dialogue, viewing Ontario's decision to halt the commercial as part of this effort. Meanwhile, the U.S. president denied holding a summit meeting during international meetings in Asia. Thawing political and diplomatic relations is not easy. Politico

6. Where Will It Hit?—The "Double Whammy" on Prices, Supply Chains, and Corporate Profits

Items such as home appliances, cars and parts, lumber and building materials, and furniture, which have already seen cost increases, may face further upward pressure. The North American supply chain relies on U.S.-Canada exchanges, making it urgent to redesign inventory strategies, contract renewals, and price transfers. In the short term, alternative sourcing of suppliers is needed, and in the long term, optimizing rules of origin and USMCA utilization will be the focus. ABC News

7. Reactions on Social Media—Contrast of "Applause" and "Cold Sweat"

• Trump posted on social media that the 10% increase is a measure against "significant distortion of facts and hostile acts." While supporters praised the tough stance, there were also many concerns about the legal basis and rising prices. CBS News

• Canadian economic groups are increasingly wary. The Business Council of Canada pointed out that "tariffs are a tax on U.S. and Canadian consumers, worsening inflation." The Canadian Chamber of Commerce also criticized that "tariffs raise the price of everything, hurting households and businesses." thebusinesscouncil.ca

• Meanwhile, Premier Ford announced the plan to halt the commercial early next week. On social media, criticism such as "Can a state advertisement break federal trade?" and "The diplomatic cost is too high" clashed with defenses like "The aim of raising the issue was achieved." AP News

8. What the "Mediatization" of North American Politics Has Brought

Trade policy is inherently a world of statistics and legal texts. However, this case has visualized an era where a few seconds of TV commercials and social media posts directly impact bilateral negotiations and corporate cash flow. Depending on the Supreme Court's decision and the announcement of specific operations, the 10% increase could mean more than just a symbol. Companies should take immediate action on four points: (1) waiting for confirmation of tariff implementation and target items, (2) reevaluating suppliers, (3) revising price terms, and (4) rechecking USMCA eligibility. The Washington Post

9. Key Points to Watch (Practical Memo)

• Court Calendar: In early November, the Supreme Court hearing will focus on the scope of presidential authority. Interim operations until the ruling are crucial. The Washington Post

• Application Notice: Check the official gazette and notifications for the tariff increase, confirming the breakdown of HS codes and the effective date. Also check the possibility of provisional rates and exclusion applications. CBS News

• Overlap with Existing Tariffs: Update the visual map of overlapping with the 35% and sector-specific tariffs introduced and strengthened this year (effective tax rate). Reuters

• Diplomatic Events: Check for any unofficial contacts at international meetings in Asia. Prepare for a possible "overturn" of the denial of a summit meeting. The Washington Post

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