In a significant escalation late Thursday, President Trump announced he was cutting off trade negotiations with Canada. This decision, stemming from the high tariffs he has already imposed on Canadian steel, auto parts, and other major exports, injects fresh uncertainty into the relationship with America’s second-largest trading partner.
The President, using his platform on Truth Social, explicitly stated that he was terminating all trade discussions with Canada. His reasoning? A video advertisement, funded by the province of Ontario, that featured former President Ronald Reagan criticizing tariffs.
“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Trump wrote, emphasizing his stance. He continued, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
Trump further claimed the 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, the quotes used in the ad are genuinely from a radio address Reagan delivered in April 1987. In that address, Reagan advocated against protectionist policies, particularly concerning Japan, and offered a strong critique of tariffs’ economic drawbacks. While the ad rearranged some of Reagan’s statements, there’s no evidence of alteration to the quotes themselves.
It remains unclear whether Trump communicated with Canadian Prime Minister Mark Carney or any Canadian officials before his announcement. Both Carney’s office and the White House have yet to comment. This wasn’t the first time Trump had mentioned the ad; on Tuesday, he told reporters, “I saw an ad last night from Canada,” adding, “If I was Canada I’d take that same ad also.”
Later on Thursday, the Ronald Reagan Presidential Foundation and Institute issued a statement on social media, claiming the Ontario ad used “selective” audio and video that “misrepresents the Presidential Radio Address,” though they didn’t specify how. It was this statement that seemingly prompted Trump’s definitive Truth Social post.
“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Trump reiterated.
Trump’s approach to Canada has been notably aggressive. Besides imposing a 35 percent tariff on key Canadian exports, he has even hinted at the possibility of Canada becoming the 51st U.S. state. Such actions have led to a significant deterioration of Canadian sentiment towards the U.S. in recent months. This latest development coincidentally arrives as the Toronto Blue Jays prepare for the World Series, a moment of national pride for Canadians.
The long-term implications for U.S.-Canadian relations are still uncertain. Both countries, along with Mexico, are in the process of reviewing their joint free trade agreement, which is expected to conclude next summer.
Prime Minister Carney had met with Trump at the White House earlier this month, a seemingly cordial meeting that nonetheless failed to produce any breakthroughs. Carney has publicly stated that the “old relationship” with the U.S. is over and, in a recent economic policy address, expressed his aim to double Canada’s exports to non-U.S. destinations over the next decade.
The controversial ad was indeed placed by the government of Ontario, Canada’s most populous province and a crucial hub for economic ties with the United States. Ontario reportedly spent 75 million Canadian dollars (approximately $53.5 million) to broadcast the ad. It first aired in the U.S. during a Blue Jays game and was planned for a two-week run.
In the ad, Reagan’s voice states, “When someone says, ‘Let’s impose tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products.” He then warns of the damage: “Markets shrink and collapse, industries shut down and millions of people lose their jobs.”
Reagan’s 1987 radio address originated from Camp David, ahead of a visit by the Japanese prime minister. At the time, despite growing U.S. frustration over Japan’s trade surplus, Reagan remained a staunch believer in free trade. While his administration had imposed some tariffs on Japanese semiconductors due to a trade agreement violation, he cautioned Congress against further protectionist measures. He emphasized that tariffs would eventually harm protected industries and spark trade wars, ultimately costing American jobs.
Doug Ford, Ontario’s premier, publicly backed the ad’s message, posting on Facebook on October 16th that they “will never stop making the case against American tariffs on Canada.” Two days prior, Ford revealed his motivation: “Let’s take Ronald Reagan’s words and let’s blast it to the American people.”