President Trump announced late Thursday that he was ending trade negotiations with Canada, a decision triggered by high tariffs he had imposed on Canadian steel, auto parts, and other major exports. This move introduces significant new uncertainty into the relationship with America’s second-largest trading partner.
The president revealed his decision on Truth Social, stating he was terminating all trade talks with Canada due to a video advertisement funded by the province of Ontario. The ad featured former President Ronald Reagan speaking negatively about tariffs.
“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Mr. Trump posted, adding, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
Mr. Trump falsely claimed the ad was fake and intended to “interfere with the decision of the U.S. Supreme Court,” which is currently reviewing challenges to several of his tariffs.
However, the quotes used in the ad are genuinely from a radio address Reagan delivered in April 1987. In that speech, Reagan strongly advocated against protectionist policies, particularly concerning Japan, and offered a stark critique of the negative economic impacts of tariffs. While the quotes were taken from different parts of his address, there is no evidence that they were altered.
It remains unclear if President Trump communicated with Prime Minister Mark Carney of Canada or any Canadian officials before making this announcement. Neither Mr. Carney’s office nor the White House immediately responded to requests for comment. This wasn’t the first time Mr. Trump had noted the ad.
“I see foreign countries now, that we are doing really well with, taking ads, ‘Don’t go with tariffs,’” Mr. Trump told reporters at the White House earlier in the week. “They’re taking ads. I saw an ad last night from Canada.”
He had even remarked then, “If I was Canada I’d take that same ad also.”
However, on Thursday, the Ronald Reagan Presidential Foundation and Institute released a statement on social media, asserting that the Ontario ad used “selective” audio and video, thereby “misrepresenting” Reagan’s address, though it did not specify how.
This statement from the Reagan Foundation seemingly prompted Mr. Trump’s Truth Social post to end discussions with Canada.
“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Mr. Trump wrote.
The Trump administration has consistently taken an aggressive stance against Canada, a significant source and destination for U.S. imports and exports. He has imposed a 35 percent tariff on some of Canada’s most crucial exports and has even provocatively suggested that Canada become the 51st U.S. state.
Over recent months, Canadian public opinion toward the United States has sharply deteriorated due to the Trump administration’s actions. This latest development unfolds just as the Toronto Blue Jays prepare to host the Los Angeles Dodgers in Game 1 of the World Series on Friday, a moment of immense national pride for Canadians.
The future of the relationship between the two countries is uncertain. The United States, Canada, and Mexico are currently preparing for a review of their shared free trade agreement, slated for completion next summer.
Prime Minister Carney visited Mr. Trump at the White House for the second time earlier this month, but their cordial meeting concluded without any major breakthroughs. Mr. Carney, who has acknowledged that Canada’s past relationship with the United States is over, recently stated in a key economic policy address his aim to double Canada’s exports to non-U.S. destinations within the next decade.
The controversial ad cited by Mr. Trump was sponsored by the government of Ontario, Canada’s most populous province and a vital hub for economic collaboration with the United States.
Ontario’s government allocated 75 million Canadian dollars (approximately $53.5 million USD) to broadcast the ad. It debuted in the United States last week during a Blue Jays game against the Seattle Mariners and was scheduled for an additional two weeks of airing.
“When someone says, ‘Let’s impose tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products,” Reagan is heard saying in the ad, set against various images of economic activity. He then warns of the damage tariffs cause: “Markets shrink and collapse,” Reagan continues, “industries shut down and millions of people lose their jobs.”
Reagan’s 1987 radio address was delivered from Camp David, preceding a visit from the Japanese prime minister. At that time, American frustration was rising over Japan’s growing trade surplus, yet leaders like Reagan continued to champion the benefits of free trade.
Reagan had just implemented some tariffs on Japanese products in response to Japan’s failure to comply with a semiconductor trade agreement. However, he urged Congress to avoid further protectionist measures, emphasizing the economic detriments of tariffs. He argued that over time, such policies would diminish the competitiveness of protected industries and spark trade wars, ultimately costing American jobs.
Doug Ford, the Premier of Ontario, introduced the ad on October 16, declaring in a Facebook post that “we’ll never stop making the case against American tariffs on Canada.”
Two days prior, Mr. Ford explained his motivation for the ad, stating he listened to Reagan’s speech and thought, “Let’s take Ronald Reagan’s words and let’s blast it to the American people.”