In a surprising turn of events late Thursday, President Trump announced the termination of trade negotiations with Canada. This decision stems from his intense displeasure over a video advertisement, funded by the province of Ontario, which prominently featured former President Ronald Reagan speaking critically about the economic impact of tariffs. The move adds yet another layer of complexity and uncertainty to the intricate relationship between the United States and its second-largest trading partner.
Taking to Truth Social, President Trump declared, ‘TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.’ He asserted that the Ontario ad was ‘fake’ and designed to ‘interfere with the decision of the U.S. Supreme Court,’ which is currently reviewing several of his tariff policies.
However, an examination of the advertisement reveals that the quotes attributed to Ronald Reagan are indeed authentic, drawn from a radio address he delivered in April 1987. In that address, Reagan sharply critiqued the economic downsides of tariffs, urging Congress to avoid protectionist policies, particularly concerning Japan’s trade surplus at the time. While the ad may not present Reagan’s statements in their original sequence, there is no evidence to suggest the quotes themselves were altered or misrepresented.
The President’s irritation with the ad was not new. Earlier in the week, he mentioned seeing the Canadian ad, noting that ‘foreign countries now, that we are doing really well with, taking ads, ‘Don’t go with tariffs.” He even suggested, ‘If I was Canada I’d take that same ad also.’ However, a statement released by the Ronald Reagan Presidential Foundation and Institute on Thursday, which claimed the Ontario ad used ‘selective’ audio and video, appears to have further fueled Mr. Trump’s anger, leading to his dramatic announcement to cease trade talks.
This latest development compounds an already strained relationship. Mr. Trump has previously imposed significant tariffs, including a 35 percent levy on key Canadian exports such as steel and auto parts. He has even controversially suggested that Canada should become the 51st U.S. state. Canadian sentiment toward the U.S. has notably declined under the current administration’s trade policies. This situation unfolds as the Toronto Blue Jays prepare to host the Los Angeles Dodgers in the World Series, a moment of national pride for many Canadians.
Ontario Premier Doug Ford, whose government invested 75 million Canadian dollars (approximately $53.5 million USD) to broadcast the anti-tariff ad in the U.S., including during Blue Jays games, has publicly reiterated his province’s stance. Ford stated on social media, ‘Canada and the United States are friends, neighbours and allies. President Ronald Reagan knew that we are stronger together. God bless Canada and God bless the United States.’ This steadfast position reflects Ford’s past behavior, where he has actively sought to influence U.S. public opinion on tariffs, even once temporarily removing U.S.-made liquor from Ontario government-owned stores.
On Friday morning, President Trump intensified his rhetoric on Truth Social, accusing Canada of attempting to ‘swindle the United States over trade’ and ‘illegally influence the United States Supreme Court’ regarding his tariffs. This sharp condemnation further clouds the future of trade relations, especially as the U.S., Canada, and Mexico are nearing a scheduled review of their shared free trade agreement next summer. Earlier this month, Canadian Prime Minister Mark Carney’s second visit to the White House yielded no progress, and Carney has since indicated that Canada’s long-standing relationship with the U.S. has fundamentally changed, announcing intentions to double Canada’s non-U.S. exports over the next decade.