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President Donald Trump has announced that the United States is terminating all trade negotiations with Canada, citing a controversial advertisement produced by the Ontario provincial government that features former President Ronald Reagan criticizing tariffs. The decision marks a sharp escalation in tensions between Washington and Ottawa, injecting a political twist into an already strained trade relationship.

Trump Calls Ad “Fake” and “Misleading”

The dispute began after Ontario Premier Doug Ford launched a $75 million advertising campaign across the United States featuring Reagan’s 1987 speech warning against protectionism. The ad shows the former president saying that tariffs may seem patriotic but ultimately harm American workers and consumers.

However, Trump denounced the ad late Thursday on Truth Social, accusing Canada of “fraudulently using” Reagan’s words out of context. “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,” Trump wrote.

Trump also claimed that the ad was designed to sway public opinion and potentially influence a pending U.S. Supreme Court case that could determine the legality of several of his tariff policies — including those targeting Canadian imports.

Reagan Foundation Disputes the Ad’s Use of the Speech

The Ronald Reagan Presidential Foundation and Institute criticized the Ontario ad, saying it edited Reagan’s April 25, 1987, radio address without authorization. The foundation argued that the ad misrepresents Reagan’s position, emphasizing that he supported selective tariffs when they served America’s interests. It encouraged the public to view the full, unedited speech on its official YouTube channel and confirmed it is “reviewing legal options.”

In reality, Reagan’s original message struck a nuanced balance — defending free trade while acknowledging the use of tariffs in limited circumstances. The ad omitted his remarks about imposing trade restrictions on Japan during that era, which critics say changes the meaning of his message.

Doug Ford Responds with Defiance

Premier Doug Ford quickly responded on Friday, reiterating that Reagan’s message was clear: tariffs often trigger “fierce trade wars” and lead to higher consumer prices. Ford reposted the unedited Reagan speech from the Reagan Library’s own YouTube account, doubling down on the ad’s central theme.

“Canada and the United States are friends, neighbours and allies,” Ford wrote on X. “President Ronald Reagan knew that we are stronger together. God bless Canada and God bless the United States.”

Ford has defended the campaign as an effort to remind Americans of the long-standing economic partnership between the two countries. Earlier this month, he pledged $75 million in ad spending to air the message in Republican-leaning districts across the U.S., calling himself a “big Ronald Reagan fan.”

White House and U.S. Officials Weigh In

At the White House, Kevin Hassett, Director of the National Economic Council, acknowledged Trump’s frustration with Canada’s trade posture. “The president’s message reflects his growing frustration after months of difficult negotiations,” Hassett said. “The Canadians have been very tough to deal with.”

The abrupt decision comes just months after Trump previously halted talks with Ottawa in June, following Canada’s move to introduce a digital services tax on U.S. tech companies — a policy it later rescinded within two days under U.S. pressure.

Rising Trade Tensions and Political Undertones

The latest fallout highlights how sensitive U.S.-Canada relations have become under the current administration. Analysts say Trump’s move could complicate discussions around key trade frameworks such as the U.S.-Mexico-Canada Agreement (USMCA) and raise concerns among industries that rely heavily on cross-border trade, including automotive manufacturing, energy, and agriculture.

Trade between the U.S. and Canada totaled more than $950 billion in 2024, making Canada America’s second-largest trading partner after Mexico. Any prolonged freeze in negotiations could disrupt business supply chains and affect investment sentiment on both sides of the border.

While the Reagan ad controversy may seem symbolic, it underscores deeper disagreements over tariffs, trade protectionism, and the political use of historical figures. Ford’s campaign — aimed at emphasizing the economic benefits of free trade — now risks becoming a flashpoint in an increasingly polarized trade landscape.

What Comes Next

With Trump’s latest decision, formal trade talks remain suspended indefinitely. Canadian officials have not yet issued a federal response, but sources close to the government say Ottawa remains committed to diplomacy.

For now, the political standoff underscores how quickly trade policy can turn into political theatre. What began as a nostalgic ad invoking Reagan’s words has now spiraled into a full-blown diplomatic rift — one that could test the resilience of one of the world’s most significant economic partnerships.