President Trump has announced the termination of trade negotiations with Canada, a decision triggered by his anger over an advertisement funded by the province of Ontario. The ad featured former President Ronald Reagan criticizing tariffs, a key tool in Trump’s trade policy. This development injects considerable uncertainty into the relationship with America’s second-largest trading partner.
In a series of posts on Truth Social, Trump declared tariffs essential for national security and the U.S. economy. He cited Canada’s “egregious behavior” in running the ad as the reason for ending all trade discussions. Trump also claimed the advertisement was fake and designed to influence a pending U.S. Supreme Court case concerning his tariffs.
However, the quotes used in the ad are genuinely from a 1987 radio address by Reagan, where he sharply critiqued the economic effects of protectionist policies. While the ad may have reordered Reagan’s statements, their authenticity is confirmed.
Neither the White House nor Prime Minister Mark Carney’s office immediately commented on the announcement. Trump had previously acknowledged seeing the Canadian ad days prior.
The Ronald Reagan Presidential Foundation and Institute had issued a statement saying the Ontario ad used “selective” audio and video, which Trump then cited to justify his abrupt halt to negotiations.
Trump’s aggressive posture towards Canada is not new, having previously imposed 35 percent tariffs on major Canadian exports and even suggesting Canada should become a U.S. state. Canadian public sentiment towards the U.S. has significantly soured due to these actions. This latest diplomatic friction occurs as Canadians celebrate a major national event: the Toronto Blue Jays’ World Series opener.
The impact of this decision on the ongoing review of the free trade agreement among the United States, Canada, and Mexico, scheduled for completion next summer, remains unclear. Prime Minister Carney recently met with Trump without resolving trade differences and has indicated Canada’s intention to diversify its export markets away from the U.S. over the next decade.
The Ontario government spent approximately $53.5 million to broadcast the anti-tariff ad in the U.S., airing it during high-profile events like Blue Jays games. In the ad, Reagan is heard warning that while tariffs might seem patriotic, they ultimately damage economies, causing markets to shrink, industries to shut down, and millions to lose jobs. Reagan’s 1987 address, given amidst U.S.-Japan trade tensions, was a firm endorsement of free trade and a cautionary tale against protectionism, even referencing the devastating Smoot-Hawley tariff from the Great Depression era. Ontario Premier Doug Ford explicitly stated his motivation for the ad was to “blast” Reagan’s anti-tariff message to the American people.
Inflation Data Release Uncertain Amid Shutdown
In other news, a White House official has indicated that the Trump administration might not be able to release the next round of inflation data in November, an unfortunate consequence of the ongoing government shutdown. This potential delay could further complicate the Federal Reserve’s critical task of understanding the economy’s direction and calibrating interest rates effectively.
Ontario Premier Reiterates Anti-Tariff Stance
Premier Doug Ford of Ontario has publicly doubled down on the message of the advertisement that sparked President Trump’s ire. Ford posted on social media, expressing, “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,” while linking to the 1987 anti-tariff speech by Reagan. This move is characteristic of Ford, who has a history of using targeted ads and public gestures, such as temporarily removing U.S.-made liquor from Ontario stores, to oppose American tariffs.
Trump Intensifies Criticism of Canada
President Trump further escalated his criticism of Canada, accusing the nation of attempting to swindle the United States on trade and unlawfully influence a U.S. Supreme Court case that could potentially overturn many of his tariffs. Speaking on Truth Social, he declared, “CANADA CHEATED AND GOT CAUGHT!!!” This follows his announcement yesterday of cutting off trade negotiations with Canada.
Regional Summit Ahead for Trump and Carney
Trump’s abrupt decision to halt trade discussions with Canada comes just before a Southeast Asian regional summit in Malaysia, which both he and Prime Minister Carney are slated to attend. There has been no official confirmation regarding a potential meeting between the two leaders, and Carney’s office has remained silent on Trump’s announcement.
Government Shutdown Hits Federal Workers’ Paychecks
Thousands of federal workers are now experiencing the harsh reality of missed paychecks as the government shutdown continues indefinitely. Approximately 670,000 federal employees have been furloughed, while another 730,000 are working without pay, according to the Bipartisan Policy Center. Many impacted individuals are turning to gig work, such as food delivery, or relying on food banks to make ends meet.
Pamela Ward, a 52-year-old telephone service representative for the Social Security Administration, expressed profound shock at receiving a $0 paycheck after 27 years of dedicated work. President Trump has authorized the use of other funds to pay military and federal law enforcement personnel during the shutdown. However, he has ambiguously suggested that not all furloughed workers may be reimbursed, despite legal requirements. Rui Carlos Pereira de Sá, a biomedical engineer at the National Institutes of Health, had prudently saved money anticipating potential layoffs due to Trump’s demands to reduce government size. His family is currently managing on his wife’s income, and he is organizing a food distribution effort for furloughed federal workers.
Letitia James to Face Charges in Court
New York Attorney General Letitia James is scheduled to appear in federal court in Norfolk, Virginia, to plead not guilty to charges of bank fraud. These charges, initiated by the Trump administration, allege she misled a bank to secure more favorable mortgage terms. This high-profile prosecution, pushed by President Trump despite objections from career prosecutors, is widely seen as a litmus test for his broader efforts to retaliate against political adversaries.
James vehemently maintains her innocence, calling the charges “baseless” and a “desperate weaponization of our justice system.” She is accused of misrepresenting a Virginia home purchase as a secondary residence, allegedly using it as a rental property instead. However, her great-niece has resided in the home rent-free since 2020, and James has reported minimal rental income on her tax forms. The U.S. attorney who initially reviewed the evidence found no basis for criminal charges but was subsequently replaced by a White House aide with no prior prosecutorial experience, who then secured the indictment against James, as well as unrelated charges against former FBI Director James B. Comey, both known critics of Trump. James’s legal team plans to challenge the prosecutor’s appointment and has requested judicial intervention to prevent further extrajudicial comments by the prosecution to the media.
U.S. Drug Boat Strikes: Intelligence Scrutinized
The Trump administration asserts that its recent military strikes on boats in the Caribbean and Pacific targeted drug traffickers. However, the U.S. government has released scant public details regarding the intelligence that led to these conclusions or information about the nearly 40 casualties. The administration claims to possess “incredible intelligence,” including “recorded proof and evidence” of drug smuggling, suggesting intercepted communications and overhead imagery. Secretary of State Marco Rubio affirmed, “We track them from the very beginning.”
Officials familiar with the strikes indicate that “signals intelligence”—such as radio traffic or mobile phone data—forms the strongest evidence. Yet, they acknowledge the inherent limitations of such intelligence. Drug dealers often use code, which can be misconstrued, a lesson learned from intelligence misreadings during the lead-up to the Iraq War. Experts advocate for combining signal intelligence with other sources, like satellite imagery and human informants, for greater accuracy. While Trump has made counternarcotics a top priority, intelligence gathering on cartels is not new, having been expanded under previous CIA directors. However, officials concede that intelligence on Latin America remains “imperfect,” with limited understanding of groups like Venezuela’s Tren de Aragua gang, despite Trump’s unverified claims of Venezuelan government control. Unlike counterterrorism operations, the administration has not provided details on other individuals potentially present on the crowded targeted boats, some of whom were migrants from various countries, contradicting initial assertions about comprehensive knowledge of smuggling operations. Colombian President Gustavo Petro has denounced one strike as murder, claiming it resulted in the death of a fisherman.