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Trade Tensions Explode: Trump Halts Canada Talks Amid Tariff Dispute

October 24, 2025
in World
Reading Time: 5 min

A recent ad campaign from Ontario, Canada’s most populous province, featuring former President Ronald Reagan criticizing tariffs, has provoked a strong reaction from President Trump, leading him to abruptly end all trade negotiations with Canada.

Late Thursday, President Trump announced on Truth Social his decision to terminate discussions regarding the substantial tariffs he had previously imposed on Canadian steel, auto parts, and other key exports. This move introduces a fresh wave of uncertainty into the critical relationship with America’s second-largest trading partner.

According to Mr. Trump, the Ontario-funded video advertisement, which showcased remarks from a 1987 radio address by President Reagan advocating against protectionist trade policies, was a “FAKE” and fraudulent attempt to sway the U.S. Supreme Court, which is currently reviewing challenges to many of Mr. Trump’s tariff decisions.

While Mr. Trump vehemently 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,” an examination of the ad reveals that Reagan’s quotes, although compiled from different sections of his speech, accurately reflect his strong critique of tariffs’ negative economic impacts, such as market shrinkage and job losses.

The White House and Canadian Prime Minister Mark Carney’s office offered no immediate comment on whether direct communication had occurred before Mr. Trump’s sudden announcement. However, it wasn’t the first time the ad had caught his attention; just days earlier, he had acknowledged seeing Canadian ads against tariffs, even remarking that he would do the same if he were Canada.

Adding another layer to the controversy, the Ronald Reagan Presidential Foundation and Institute issued a statement on social media, asserting that the Ontario ad used “selective” audio and video that “misrepresented” the former president’s message, although specifics were not provided. This statement, it appears, was the final trigger for Mr. Trump’s decision to cut off talks.

President Trump has consistently adopted a tough stance on Canada, a major trade partner, imposing significant tariffs and even controversially suggesting the country should become the 51st U.S. state. Such actions have significantly strained U.S.-Canadian relations in recent months, a sentiment particularly palpable as Canadians rallied behind their national pride ahead of the Toronto Blue Jays’ World Series opener.

The future of the U.S.-Canada trade relationship remains unclear, especially with a review of their shared free trade agreement, also involving Mexico, scheduled for next summer. Despite a recent cordial meeting between Prime Minister Carney and Mr. Trump, no breakthroughs were achieved. Carney has openly stated that Canada’s traditional relationship with the U.S. has changed, and he recently outlined a plan to double Canada’s exports to other global markets over the next decade.

The Ontario government, which spent approximately 75 million Canadian dollars ($53.5 million) to broadcast the anti-tariff ad in the U.S., particularly during popular events like Blue Jays games, clearly aimed to influence American public opinion. Premier Doug Ford, who initiated the campaign, stated his resolve to “never stop making the case against American tariffs on Canada,” explicitly intending to “blast” Reagan’s words to the American people.

Update: Canada Doubles Down on Anti-Tariff Message

Premier Doug Ford has reaffirmed Ontario’s position on the controversial ad. He 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,” alongside the video featuring Reagan’s 1987 speech.

This tactic is characteristic of Premier Ford, who has a history of launching campaigns aimed at American audiences to oppose tariffs. He once famously removed all U.S.-made liquor from government-owned stores in Ontario during an earlier trade dispute to underline his stance.

Update: Trump Reiterates Accusations Against Canada

On Friday morning, President Trump intensified his criticism, accusing Canada of trying to “swindle” the U.S. on trade and illegally interfering with a Supreme Court case that could affect his tariffs. “CANADA CHEATED AND GOT CAUGHT!!!” he declared on social media, further stating that Canada was attempting to “illegally influence the United States Supreme Court in one of the most important rulings in the history of our Country.” This follows his Thursday announcement of ending trade negotiations.

Update: Upcoming Southeast Asian Summit

President Trump’s decision to halt trade talks with Canada comes just as both leaders are slated to attend a Southeast Asian regional summit in Malaysia this weekend. There has been no official confirmation regarding a potential meeting between Trump and Prime Minister Carney during the summit, and Carney’s office has remained silent on the recent development.

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