Busan [South Korea], October 30 (ANI): US President Donald Trump indicated a possible easing of tensions with Canada, days after escalating a trade dispute with the country over what he described as a 'fake' advertisement involving former US President Ronald Reagan.

Canadian Prime Minister Mark Carney was among a select group of world leaders who joined Trump for dinner on Wednesday night during the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea.

'We had a very nice conversation with him last night,' Trump told reporters aboard Air Force One when asked about his interaction with Carney, hinting at a softening tone after days of strained exchanges.

The dinner followed a turbulent week in US-Canada relations. Trump had recently announced a 10 per cent tariff increase on Canadian imports, accusing Ottawa of misrepresenting Reagan's 1987 anti-tariff speech in a television advertisement aired during the MLB World Series on October 26.

The ad, reportedly funded by the Ontario government at a cost of USD 75 million, suggested that Reagan opposed tariffs--a claim Trump denounced as fraudulent.

'Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn't! Their (Canada's) Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD,' Trump wrote on Truth Social while aboard Air Force One.

'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.'

Currently, multiple Canadian products face a 35 per cent tariff, while steel and aluminium are subject to 50 per cent, and energy products 10 per cent. Trump did not specify which sectors the additional tariffs would target.

The controversy over the advertisement further strained relations that had already been tense since early October. On October 7, Trump and Carney had met in Washington to discuss trade, border security, and ongoing negotiations between the two countries.

At that time, Trump described the talks as 'complicated, more complicated than maybe any other agreement we have on trade,' attributing the difficulty to the countries' deep economic ties and 'natural conflict' born out of their closeness.

However, just weeks later, Trump refused to meet with Carney before departing for Asia, telling reporters at the White House, 'No, I don't have any plan to.'

The refusal underscored how quickly relations had soured, culminating in his tariff hike announcement and public criticism of Canada's 'fraudulent' portrayal of Reagan.

Trump also accused Canada of hoping to be 'rescued' by the US Supreme Court over the tariff issue.

'The sole purpose of this FRAUD was Canada's hope that the United States Supreme Court will come to their 'rescue' on Tariffs that they have used for years to hurt the United States,' he posted on X, adding that the new tariffs would allow the US to defend itself against 'high and overbearing Canadian Tariffs.'

Despite the friction, Wednesday's brief interaction between Trump and Carney at the APEC summit suggested a possible thaw.

During a group photo session, Trump initially avoided Carney but later pointed toward him during the summit dinner, drawing an acknowledging gesture from the Canadian leader.

The brief exchange, coming after weeks of escalating rhetoric, hinted that diplomatic communication between the two neighbours may not be entirely closed. (ANI)