Trump hits Canada with a tariff hammer – commercial causes controversy!

Trump hits Canada with a tariff hammer – commercial causes controversy!

In a new exchange of blows in the trade war between the United States and Canada, US President Donald Trump has increased tariffs on Canadian goods by 10 percent. The reason for this drastic measure is a commercial broadcast by Canada that used a speech by Ronald Reagan about tariffs, which Trump criticized as a fake portrayal. According to information from Picture Trump believes the intention behind the commercial is to influence the opinion of the Supreme Court.

The situation escalated when Trump posted on Truth Social that Canada had misquoted Reagan and that the video released by Ontario Prime Minister Doug Ford discussed the negative impact of high tariffs on jobs and markets. Although Canada announced it would withdraw the controversial clip, it re-aired it during the World Series. This led Trump to decide to completely break off trade talks with Canada after positive discussions in the White House, such as ZDF reported.

Criticism of advertising and legal disputes

The Ronald Reagan Presidential Foundation & Institute has since complained about the unauthorized use of the audio material. Their portrayal of Reagan actually falls apart and stands in stark contrast to his original statements, which advocated free trade and viewed tariffs as a necessary evil. In the original 1987 address, Reagan even warned of the negative consequences of trade wars, a point that was not mentioned in the Canadian advertising, the foundation made clear.

Trump, whose economic policy shows a fundamental departure from Reagan's principles, firmly believes in using tariffs as a means of pressure to reduce the US trade deficit. This not only has implications for Canada, but also for economic relations in Europe, where there are already fears that tariff policies could also impact smaller exporters who are struggling to compete internationally.

Consequences for the US economy and the dollar

Another dimension in this trade conflict is the value of the US dollar, which has fallen by 10 percent since the beginning of the year. This decline has brought the dollar to its lowest level in three years. Economists fear this weakness could threaten the dollar's status as a safe-haven asset. However, a weak dollar could boost U.S. exports as American products become cheaper abroad. Imported goods from Europe, on the other hand, become more expensive, which could affect the competitiveness of European companies ZDF explained.

Overall, current developments show that the trade conflict with Canada and the tariffs on Trump's agenda not only have local effects, but also have deeper economic implications for international trade and the economic stability of the USA and Europe.