Trump ends Canada trade talks over anti-tariff ad featuring Ronald Reagan

President Donald Trump has abruptly ended trade discussions with Canada, deepening tensions between the two close neighbours and long-time economic partners.

The U.S. president said on Thursday that he was halting negotiations in response to an advertisement released last week by Ontario’s provincial government.

The ad featured audio from a 1987 speech by former U.S. President Ronald Reagan condemning tariffs as harmful to American workers and consumers.

The Ronald Reagan Foundation later distanced itself from the ad, saying it “misrepresents” the late president’s remarks and was used without permission.

Reacting on his social media platform, Truth Social, Trump blasted the commercial as “fraudulent,” accusing Canada of attempting to “interfere with the decision of the U.S. Supreme Court, and other courts.”

“Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump wrote.

Ontario Premier Doug Ford, who shared the ad on 16 October, defended it as part of efforts to push back against U.S. tariffs on Canadian exports. “Using every tool we have, we’ll never stop making the case against American tariffs on Canada,” he wrote.

Despite a disclaimer stating that the ad was not endorsed by the Ronald Reagan Presidential Library or Foundation, the controversy has escalated diplomatic friction between the two nations.

The Canadian Prime Minister, Mark Carney, who recently met with Trump at the White House to ease trade tensions, has yet to respond officially. Before Trump’s latest comments, Carney had posted on X (formerly Twitter) that Canada planned to diversify its trade network and double non-U.S. exports within the next decade.

Trade relations between the U.S. and Canada have been strained since Trump imposed steep tariffs on key Canadian exports such as steel, aluminium, autos, lumber, and energy under the U.S.–Mexico–Canada Agreement (USMCA). The policy has contributed to Canada’s highest unemployment rate in nearly a decade.

“This is the last thing that either country needs,” said Jack Buffington, Director of the Supply Chain Programme at the University of Denver. “We need to stabilise the North American supply chain, especially given the U.S. challenges with China.”

Although recent talks between both leaders hinted at improving relations, Trump’s latest declaration appears to have ended any short-term hopes of reconciliation.

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