Late Thursday, President Trump announced he was abruptly terminating trade negotiations with Canada. This dramatic decision, which introduces significant uncertainty into the relationship with America’s second-largest trading partner, stemmed from his anger over a video advertisement. The ad, funded by the Canadian province of Ontario, featured former President Ronald Reagan criticizing tariffs.
In a post on Truth Social, Mr. Trump declared, ‘TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.’ He continued, ‘Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.’
President Trump asserted that the ad was ‘fake’ and deliberately intended ‘to interfere with the decision of the U.S. Supreme Court,’ which is currently reviewing the legality of many of his tariff policies.
However, these quotes accurately originated from a 1987 radio address by Mr. Reagan. In that speech, he strongly advised Congress against protectionist measures toward Japan and delivered a sharp criticism of tariffs’ detrimental economic impacts. While the ad’s segments are taken from various parts of the speech, there is no evidence of any alteration to Mr. Reagan’s original words.
It remained uncertain whether President Trump had consulted with Canadian Prime Minister Mark Carney or any Canadian officials before publicizing the cancellation of trade talks. Both Mr. Carney’s office and the White House did not immediately comment. This recent statement, however, wasn’t the first sign that the ad had caught Mr. Trump’s attention.
Just days prior, Mr. Trump told reporters at the White House, ‘I see foreign countries now, that we are doing really well with, taking ads, ‘Don’t go with tariffs.’ They’re taking ads. I saw an ad last night from Canada.’ He even mused, ‘If I was Canada I’d take that same ad also.’
Despite Mr. Trump’s earlier comments, the Ronald Reagan Presidential Foundation and Institute issued a social media statement Thursday, claiming the Ontario ad used ‘selective’ audio and video from Mr. Reagan’s address and ‘misrepresents the Presidential Radio Address,’ though without specifying how.
This foundation statement seemingly prompted Mr. Trump’s subsequent Truth Social post announcing the end of talks: ‘The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,’ he stated.
Mr. Trump has maintained an aggressive posture toward Canada, a crucial partner for both U.S. imports and exports. He has previously imposed a 35% tariff on key Canadian exports and even controversially suggested Canada should become the 51st U.S. state.
Canadian public opinion of the United States has significantly deteriorated in recent months due to actions by the Trump administration. This latest diplomatic friction occurs as the Toronto Blue Jays are set to host the Los Angeles Dodgers in the World Series, a significant national event that typically unites Canadians.
The implications of Mr. Trump’s declaration for the bilateral relationship remain uncertain, especially as the U.S., Canada, and Mexico were already planning a review of their joint free trade agreement, slated for completion by next summer.
Prime Minister Carney had visited Mr. Trump at the White House earlier this month, their second meeting, but even that cordial encounter failed to produce a breakthrough. Mr. Carney, who has previously stated that Canada’s traditional relationship with the U.S. has changed, recently announced an ambitious goal to double Canada’s exports to other countries within the next decade.
The controversial advertisement, highlighted by Mr. Trump, was indeed sponsored by the government of Ontario, Canada’s largest province and a key hub for U.S.-Canada economic ties.
Ontario’s government confirmed spending 75 million Canadian dollars (approximately $53.5 million) to air the ad. It debuted in the U.S. during a Blue Jays game the previous week and was slated for a two-week broadcast period.
In the ad, set against visuals of economic activity, Mr. Reagan is heard saying, ‘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 tariffs inflict: ‘Markets shrink and collapse, industries shut down and millions of people lose their jobs.’
The 1987 radio address was delivered by Mr. Reagan from Camp David, ahead of a visit by the Japanese prime minister to Washington. Despite rising U.S. anger over Japan’s growing trade surplus, leaders like Reagan remained firm believers in the advantages of free trade.
Although Mr. Reagan had recently imposed tariffs on certain Japanese semiconductor products due to a trade agreement breach, he cautioned Congress against further protectionist policies. He argued that such measures would ultimately reduce the competitiveness of protected industries and initiate trade wars, leading to job losses in America.
Ontario Premier Doug Ford unveiled the ad on October 16th, stating in a public 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, noting that after listening to Reagan’s speech, he thought, ‘Let’s take Ronald Reagan’s words and let’s blast it to the American people.’
Ontario Premier Reiterates Anti-Tariff Stance
Ontario Premier Doug Ford has reiterated the message of his province’s advertisement, which has ignited President Trump’s anger. Ford posted on social media, emphasizing, ‘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 ad featuring Reagan’s 1987 anti-tariff speech.
This particular disagreement over the Reagan ad is characteristic of Premier Ford’s approach. Ontario’s leader has a history of running ads in the U.S. to challenge tariffs and actively seeks public attention for his policy stances. For instance, early in the trade dispute with the U.S., Ford notably removed all American-made liquor products from the shelves of Ontario’s state-run alcohol stores.
Trump Escalates Rhetoric, Accuses Canada of Cheating
On Friday morning, President Trump intensified his criticism of Canada, accusing the nation of attempting to ‘swindle’ the United States in trade and illegally trying to sway a Supreme Court case that could jeopardize many of his tariffs. ‘CANADA CHEATED AND GOT CAUGHT!!!’ he proclaimed on Truth Social, further stating, ‘Canada is trying to illegally influence the United States Supreme Court in one of the most important rulings in the history of our Country.’ This followed his late Thursday announcement to sever trade negotiations with Canada, a nation already subjected to his high tariffs on goods like steel and auto parts.
Summit Meeting Looms Amidst Trade Standoff
President Trump’s decision to halt trade discussions with Canada coincides with his and Prime Minister Mark Carney’s scheduled attendance at a Southeast Asian regional summit in Malaysia this weekend. No official confirmation has been made regarding a potential meeting between the two leaders, and Prime Minister Carney’s office has yet to publicly address Trump’s announcement.