President Donald Trump has announced the termination of all United States trade negotiations with Canada, citing a television advertisement from Ontario that uses excerpts of a 1987 speech by former president Ronald Reagan to criticise tariffs.
The ad, part of a C$75m ($54m) campaign launched by Ontario Premier Doug Ford, shows Reagan warning that high tariffs can trigger retaliation and “fierce trade wars,” leading to job losses and economic decline. Ford has positioned the campaign as a defence of Canadian industry against US tariffs, which were raised by Trump in August to 35% on goods including steel, aluminium and automobiles.
In a late-night post on his Truth Social platform, Trump called the commercial “FAKE” and “fraudulent,” accusing Canada of “egregious behaviour” and of attempting to influence a forthcoming US Supreme Court ruling on the legality of his global tariffs. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” he wrote.
The Ronald Reagan Presidential Foundation & Institute, whose permission had not been sought for the ad, said the clip misrepresented Reagan’s radio address by using “selective audio and video.” While the foundation did not specify what was misleading, it confirmed it was reviewing legal options. The original speech was delivered shortly after Reagan had imposed duties on some Japanese imports; while defending that decision, he also warned that protectionist policies, if prolonged, would damage the US economy.
Ford responded on Friday by posting the full Reagan speech from the Reagan Library’s YouTube channel, highlighting passages critical of tariffs. “Canada and the United States are friends, neighbours and allies. President Ronald Reagan knew that we are stronger together,” Ford wrote on X.
Canadian Prime Minister Mark Carney, speaking before leaving for the ASEAN summit in Malaysia, said Ottawa was ready to resume discussions “when the Americans are ready.” He added that progress had been made in sector-specific talks on steel, aluminium and energy, despite what he described as a difficult negotiating climate. More than three-quarters of Canada’s exports are sold to the US, with goods and services worth US$909bn traded between the two countries last year.
This is the second time in recent months Trump has halted trade negotiations with Canada. In June, he suspended talks over Ottawa’s Digital Services Tax, before resuming them when Canada withdrew the levy. Trump has also previously suggested that annexation as a “51st state” would benefit Canadians by lowering taxes and providing “perfect military protection.”
Ontario, Canada’s most populous province and home to its steel industry, has been among the hardest hit by US tariffs. Ford has been a prominent critic of Trump’s trade policy, saying earlier this month: “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”
Trump’s decision adds to a growing list of trade flashpoints involving his administration, including new sanctions on Russia’s energy sector and continuing disputes with China, whose vice-premier is due to meet US Treasury Secretary Scott Bessent in Malaysia on Friday.
