Canadian Prime Minister Mark Carney defended this Sunday in Malaysia the need to expand trade between his country and Southeast Asia, after the President of the United States Donald Trump, who is also in Kuala Lumpur for the ASEAN summit, announced an additional 10% tariff on Canada.
“We want to increase our non-US exports by 50% in the next decade (...) and we expect a substantial proportion to come from ASEAN,” said Carney, referring to the Association of Southeast Asian Nations (ASEAN), whose leaders' summit began on Sunday in Kuala Lumpur.
The Canadian leader participated in an economic forum on the sidelines of the ASEAN summit, where he stressed the importance of “broadening and deepening” trade ties with countries that believe in “a rules-based trading system.”
Carney's comments come after US President Donald Trump announced this Saturday an additional 10% tariff on Canada, a measure that exacerbates trade tensions between the two countries and has led them to suspend bilateral talks.
The US president made the announcement on his Truth Social account, where he justified the rate increase by citing a television advertisement that featured statements by former Republican President Ronald Reagan against taxes and was promoted by the government of Ontario, the Canadian province where the capital, Ottawa, is located.
"It's a huge change that happens almost overnight, and therefore it's difficult to manage," said the Canadian.
“Your ad was supposed to be pulled IMMEDIATELY, but you allowed it to air last night (Friday) during the World Series, knowing it was a FRAUD,” he wrote during his trip to Asia. “Due to your gross distortion of the facts and hostile action, I am increasing tariffs on Canada by an additional 10% above what you currently pay.”
The Ronald Reagan Foundation accused the campaign in its lawsuit of"distorting" the former president's words and using them "selectively." It also said it is reviewing its "legal options in this matter."
The new tension began unexpectedly on Thursday, when Trump announced he had ordered the suspension of trade negotiations with Canada over the one-minute commercial.
From Ottawa, Carney expressed his willingness on Friday to resume trade talks abruptly interrupted by Trump. However, the US stance hardened after the Ontario campaign, with White House adviser and director of the National Economic Council, Kevin Hassett, warning that the negotiation faced many obstacles due to a “lack of flexibility” from the Canadian partner. “Frustration has built up over time,” Hassett told reporters at the White House.
In March, the Trump administration imposed 25% tariffs on Ottawa over Canada's fentanyl trafficking to the United States, and then raised them again to 35% in July for all products not covered by the USMCA.
Canada also raised its tariffs in retaliation for Washington's decision, but ultimately withdrew them as of September 1 to facilitate trade talks with Trump.
The escalation of the trade war coincides with the upcoming 2026 review of the United States-Mexico-Canada Agreement (USMCA). Mexican President Claudia Sheinbaum said her government remains attentive to the evolution of relations between the United States and Canada and that negotiations between Mexico and Washington are progressing"very well" on issues related to revising the agreement. According to Sheinbaum, Mexico's focus remains on working with both parties within the framework of the USMCA, while trade differences persist in the north of the continent.
