U.S. President Donald Trump has abruptly terminated all trade negotiations with Canada, citing an anti-tariff advertisement by the Ontario government that he labeled as fraudulent. The ad features the voice of former President Ronald Reagan criticizing tariffs, sparking controversy and leading to the collapse of ongoing talks.
Trump announced the decision late Thursday in a post on his Truth Social platform, writing that “ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED” due to what he called “egregious behavior.” The move came just hours after the Ronald Reagan Presidential Foundation issued a statement condemning the ad for misrepresenting Reagan’s 1987 radio address on free trade, claiming it used selective editing without permission. The foundation said it was reviewing legal options, and Trump referenced this in his post, accusing the ad of being designed to interfere with the U.S. Supreme Court’s upcoming decision on his tariff policies.
The advertisement in question is a minute-long clip sponsored by Ontario Premier Doug Ford’s government, which began airing last week on major U.S. television networks as part of a $75 million campaign. It uses excerpts from Reagan’s speech, where he states that tariffs “hurt every American” and can lead to trade wars, job losses, and economic decline, aiming to persuade American audiences against Trump’s tariff policies. Ontario officials defend the ad as using public domain material, emphasizing Reagan’s support for free trade, and Ford has vowed to continue opposing the tariffs despite the backlash.
Trump accused the ad of being “fake” and linked its timing to the Supreme Court’s scheduled hearing next month on the legality of his broad-based tariffs imposed under the International Emergency Economic Powers Act. The court’s decision could force the U.S. to refund billions in tariffs and represents a major test of Trump’s presidential authority. The Reagan Foundation’s criticism added weight to Trump’s claims, though the ad does not alter Reagan’s words but rearranges their order from the original speech.
Trade talks between the U.S. and Canada had been progressing since Prime Minister Mark Carney met with Trump at the White House on October 7, with negotiations focused on easing tariffs on steel, aluminum, and other goods. As recently as Wednesday, Canadian officials described the talks as making progress, and Trump had earlier directed his cabinet to seek a deal. However, the ad campaign heightened tensions, with Trump seeing it earlier in the week but only reacting strongly after the foundation’s statement.
Trump’s administration has imposed tariffs of up to 50% on certain Canadian imports, such as metals and automobiles, significantly impacting Ontario’s economy, the hardest-hit region, and leading to job losses and business pressures. Ontario, as Canada’s most populous province and largest regional economy, has borne the brunt of these measures, prompting Ford’s government to launch the ad campaign as a direct response to the economic strain.
This is not the first time tensions have flared between Trump and Ford; in March, Ford threatened to impose a surcharge on Ontario’s electricity exports to the U.S., leading Trump to threaten doubling tariffs on Canadian steel and aluminum before both sides backed down. The current incident underscores the volatile nature of trade relations under Trump, with previous disputes resolved only after concessions, highlighting the challenges in maintaining stable North American trade.
The termination of talks raises concerns about further economic retaliation and the stability of bilateral relations, with implications for global trade dynamics. As the Supreme Court prepares to hear arguments, the outcome could redefine presidential power on tariffs, but Trump’s sudden move leaves future negotiations uncertain and risks escalating trade wars, affecting millions of workers and consumers on both sides of the border.