WASHINGTON — President Donald Trump announced late Thursday that he is terminating all trade negotiations with Canada in response to an Ontario government-funded advertisement he says unfairly attacks his tariff policy. In a post on his social media platform, Trump accused Canada of engaging in “egregious behavior,” claiming the ad falsely used audio from former President Ronald Reagan in a negative context about tariffs.
The advertisement, produced by the Ontario government, included edited excerpts from Reagan’s 1987 “Radio Address on Free and Fair Trade,” portraying him as critical of tariffs. The Ronald Reagan Presidential Foundation and Institute swiftly condemned the ad, stating that it misrepresented Reagan’s remarks and was used without permission. Trump framed the advertising campaign as interference in U.S. legal and political processes, notably alleging it was intended to influence decisions in U.S. courts over his tariff authority.
The move adds momentum to already high tensions in U.S.–Canada trade relations. Earlier this year, Trump had imposed steep tariffs, up to 35 percent on Canadian goods including steel, aluminum and autos, invoking national security as justification. Canada had responded in kind with retaliatory levies and sought to negotiate exemptions under the USMCA framework.
In calling off talks, Trump said, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” Ontario Premier Doug Ford acknowledged the ad’s existence but denied wrongdoing, saying the campaign was meant to resist U.S. tariffs. Canadian Prime Minister Mark Carney, meanwhile, emphasized that Canada will not allow unfair U.S. market access if talks collapse, underscoring that Canada is already seeking to diversify its export markets.
Analysts warn that the abrupt breakup could derail efforts to resolve longstanding trade disputes and increase instability for North American supply chains. With U.S.–Canada trade volumes daily reaching into the billions, the fallout may translate into higher costs, retaliatory measures, and uncertainty for businesses on both sides of the border.
