President Donald Trump has slammed the brakes on U.S.-Canada trade talks, triggered by a sassy Ontario ad quoting Ronald Reagan’s tariff cautions from 1987. Economists are already toasting to higher prices for cars, fridges, and everything in between, as steel and aluminum tariffs stick around like that one guest who won’t leave the party.
Picture this: two North American giants, bound by maple syrup, hockey rivalries, and the USMCA free trade pact, suddenly at odds over a TV spot that’s more shade than Super Bowl halftime show. Trump’s X post declared the ad’s “egregious behavior” a national security threat, terminating talks faster than a bad blind date.
The offending ad? It cleverly remixed Reagan’s old speech on Japanese import duties, warning of trade war pitfalls like a fiscal fortune teller. Trump, sans evidence, accused it of meddling in a looming Supreme Court tariff showdown—because nothing says “rigged system” like a provincial PSA with presidential echoes.
Ontario Premier Doug Ford, ever the diplomat in flannel, fired back on X with a plea for unity: “Canada and the U.S. are friends, neighbors, and allies. Reagan knew we’re stronger together—God bless both.” It’s the kind of olive branch that makes you wonder if the next gesture is a six-pack of Molson.
While most Canadian exports—like oil, gas, and those suspiciously perfect motor vehicles—skirt tariffs under USMCA, steel and aluminum aren’t so lucky. Canada, the U.S.’s top supplier of these shiny essentials, faces 50% levies that could linger like a hangover from last night’s negotiations.
Economist Michael Sposi from Southern Methodist University sighed to ABC News that talks might’ve chipped away at those duties, but now? “Expect the unexpected—inflationary hike.” Translation: your dream ride’s 60% steel frame just got a Trump-sized tax bill, courtesy of the American Iron and Steel Institute’s weighty stats.
And don’t get us started on home appliances. Refrigerators, dishwashers, and washers—those unsung heroes of domestic bliss—lean on steel like a couch potato on snacks. With input costs climbing, manufacturers will pass the buck (and then some) to you, turning “new kitchen” into “new mortgage.”
Remember June’s drama? Trump paused talks over Canada’s scrapped 3% digital tax on U.S. tech titans, only to hit play days later. This time, the ad-fueled fury feels stickier, like syrup on a spatula.
The U.S. owes Canada a modest $63 billion tab, peanuts next to China’s $295 billion or Mexico’s $171 billion feast, per the U.S. Trade Rep. Yet Canada ships three-quarters of its goods south, making up 11% of Uncle Sam’s imports—talk about a lopsided bromance.
Tyler Schipper from the University of St. Thomas foresee ripples into next year’s USMCA review. “This tariff tango flop doesn’t bode well,” he quipped, hinting at pricier imports beyond metals, like cars that might cost as much as a cottage up north.
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