Donald Trump raises Canada tariff rate by 10 per cent over Ronald Reagan ad

US President Donald Trump has warned he can “play dirtier” than Canada, after a controversial advertisement was allegedly again aired, slapping the nation with a 10 per cent tariff increase.

“Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs,” Mr Trump wrote on Truth Social.

“The Reagan Foundation said that they, ‘created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address,’ and ‘did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter’.

The ad, aired by the province of Ontario, used the words of former President Ronald Reagan to criticise US tariffs, angering Mr Trump.

After his initially outrage, Canada vowed to take the ad down and pause future running as Mr Trump had suspended trade talks.

“Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,” Mr Trump wrote on Truth Social.

“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now.”

Mr Trump has taken a no-nonsense approach with Canada when it comes to tariffs, not allowing the nation to go unpunished for seeking to criticise his fiscal move.

Canada, a member of the G7, is the only nation from the collective that has not struck a deal with Mr Trump on tariffs, despite sharing a border with the United States.

This is the ad that has sparked the fury of Mr Trump.