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October 26, 2025 US-Canada Tariff Spat Escalates, New Sanctions Loom for Russia

Tensions between the United States and Canada have escalated following President Donald Trump's announcement of an additional 10% tariff increase on Canadian goods. This decision comes after Canada failed to promptly remove an advertisement critical of tariffs. Meanwhile, the U.S. is reportedly preparing further sanctions against Russia over its ongoing conflict in Ukraine, urging European allies to increase pressure.

US-Canada Trade Relations Sour Amid Tariff Hike

In a significant development impacting North American trade, U.S. President Donald Trump announced on Saturday, October 25, 2025, an additional 10% increase in tariffs on Canada. This move comes just two days after the U.S. ended trade talks with Ottawa, citing a "misleading advertisement" aired by the Canadian province of Ontario. The advertisement, which featured a video of late President Ronald Reagan, a Republican icon, stated that tariffs lead to trade wars and economic disaster. Ontario's Premier Doug Ford had indicated the ad would be pulled after the weekend, and it ran Friday night during the first game of the World Series. President Trump made the announcement regarding the higher tariffs via a Truth Social post, referencing the ad's failure to be removed sooner. This escalation follows previous trade discussions that were terminated by Trump over the same ad campaign.

U.S. Considers Further Sanctions on Russia Over Ukraine Conflict

Separately, the United States is reportedly preparing additional sanctions against Russia, targeting key areas of its economy, should President Vladimir Putin continue to delay an end to Moscow's war in Ukraine. U.S. officials have also urged their European counterparts to utilize frozen Russian assets to purchase U.S. weapons for Kyiv, and internal discussions within Washington have begun regarding leveraging Russian assets held in the U.S. to support Ukraine's war effort. While the immediate implementation of these measures remains uncertain, it indicates a developed toolkit within the administration to increase pressure on Russia. President Trump, who has positioned himself as a global peacemaker, acknowledged that ending the more than three-year Ukraine war has proven more difficult than anticipated. His meeting with Putin in Alaska in August did not yield progress, and Trump stated on Saturday, October 25, 2025, that he would not meet with Putin again unless a peace deal appeared likely, emphasizing, "I'm not going to be wasting my time." This comes after Trump imposed sanctions on Russia on Wednesday, October 22, 2025, for the first time since returning to office in January.

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