The United States has not activated the additional 10% tariff on Canadian goods that President Donald Trump announced four weeks ago, leaving exporters and importers on both sides of the border in a state of uncertainty.

Trump declared on October 25 that all trade talks with Canada were suspended and that the extra duties would be imposed after an Ontario government advertisement aired during the World Series, criticizing U.S. tariff policies. The $53 million ad featured excerpts from a 1987 speech by former President Ronald Reagan, which the White House argued misrepresented Reagan’s stance on tariffs.

Following the announcement, Canadian exporters—particularly in the automotive sector, where components frequently cross the border—prepared for significant cost increases. Posting on Truth Social, Trump stated, “Due to serious misrepresentations and hostile actions, we are adding an additional 10% to the tariffs imposed on Canada.”

However, no formal directive has been issued to U.S. Customs and Border Protection, and American importers report receiving no official notice. “We regularly monitor federal registers and presidential orders, but we have seen no change,” said Flavio Volpe, President of the Automotive Parts Manufacturers’ Association of Canada.

The White House declined to comment on whether the additional tariff remains under consideration. A U.S. official, speaking anonymously, indicated that the administration had temporarily decided not to enforce the measure but wished to keep it available as leverage in ongoing negotiations, noting, “The Canadians know exactly what's on the table.”

Tensions may have eased after Canadian Prime Minister Mark Carney held a direct conversation with Trump during the APEC Summit in Gyeongju, South Korea. Trump said the discussion went “very well” and that Carney apologized for the advertisement. Carney later confirmed he had warned Ontario Premier Doug Ford against airing the ad, which was subsequently removed.

U.S. Ambassador to Canada Pete Hoekstra also criticized the Ontario government, saying: “You cannot come to America, broadcast political, government-funded ads, and expect no consequences.” Hoekstra added that trade talks would resume but stressed the process “will not be easy,” offering no clarity on the proposed tariff.

Canadian Trade Minister Dominic LeBlanc emphasized that Ottawa is ready to return to negotiations whenever Washington decides: “We are willing to get this done, but we will not sit by the phone waiting for an invitation.”

Despite the tensions, the U.S. and Canada continue to operate under the United States–Mexico–Canada Agreement (USMCA). While the framework guarantees free trade, the U.S. has already imposed new duties this year on Canadian steel, aluminum, automotive products, and lumber—though shipments covered by USMCA remain exempt. (ILKHA)