In a major development that could reshape North American trade relations, U.S. President Donald Trump announced the immediate termination of all trade negotiations with Canada.
The decision came after he accused Ottawa of misusing a speech by former U.S. President Ronald Reagan in an advertising campaign opposing tariffs.
Trump, in a statement posted on Truth Social, wrote, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about tariffs. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. Tariffs are vital to the national security and economy of the U.S.A. Based on their egregious behavior, all trade negotiations with Canada are hereby terminated.”
The move came only weeks after Canadian Prime Minister Mark Carney visited Washington to ease tensions over Trump’s “Liberation Day” tariff hikes, which imposed new levies on steel, autos, and digital services.
Reagan Ad Escalates Tensions
The controversy centers around a one-minute anti-tariff advertisement aired in Ontario, which used a 1987 radio address by former U.S. President Ronald Reagan. The ad, broadcast on Newsmax and Bloomberg, featured Reagan warning against the long-term dangers of tariffs and trade wars.
In the ad, Reagan says, “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens. Markets shrink and collapse, businesses and industries shut down, and millions of people lose their jobs.”
Ontario Premier Doug Ford announced the campaign, saying, “We’re launching a $75-million ad initiative to share Reagan’s message with Republican districts across the U.S.”
Rising Tariff Dispute Between the U.S. and Canada
The latest announcement intensifies a growing tariff standoff between the two nations. Earlier this year, the U.S. imposed a 25 percent tariff on Canadian exports and a 10 percent tariff on energy products. In retaliation, Canada levied counter-tariffs worth $30 billion on American goods, including orange juice, peanut butter, apparel, wine, appliances, and industrial products.
During his recent visit to Washington, Prime Minister Carney and President Trump had agreed to “work out their differences.” However, Trump’s latest remarks have cast uncertainty over any possible resolution.
Trade experts say the sudden decision could disrupt billions of dollars in bilateral trade and strain diplomatic relations further.
