U.S. President Donald Trump announced on Thursday that all ongoing trade negotiations with Canada had been formally terminated, citing what he described as a “fraudulent” political advertisement circulating in Ontario that used archival footage of former President Ronald Reagan speaking critically about tariffs. The decision, made public through Trump’s Truth Social account, marks a new escalation in tensions between Washington and Ottawa, which have been engaged for several weeks in technical discussions aimed at resolving disputes over steel and aluminum trade.
The American president’s statement followed the release of a Canadian provincial advertisement featuring Reagan’s voice from a 1987 radio address in which he warned that protectionist trade policies could trigger job losses and economic retaliation. The ad, funded by the government of Ontario, had recently attracted Trump’s attention after being referenced by Ontario Premier Doug Ford, who acknowledged earlier this week that the message was designed to underscore the negative consequences of tariffs. “I heard that the president heard our ad. I’m sure he wasn’t too happy,” Ford remarked on Tuesday, noting that the campaign was part of a broader effort to defend Canadian manufacturing and export interests against U.S. protectionist measures.
In response, Trump accused Canadian authorities of deliberate provocation, stating: “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” The declaration came only months after Washington had imposed substantial tariffs on Canadian steel, aluminum, and automobile imports, measures that Ottawa countered with equivalent duties on U.S. goods. While both governments had signaled interest in a partial reconciliation through sectoral talks, those efforts now appear suspended indefinitely.
The controversy surrounding the advertisement widened on Thursday evening when the Ronald Reagan Presidential Foundation and Institute released a formal statement denouncing the use of the late president’s image and voice. The foundation asserted that the Ontario government had neither sought nor received authorization to use or alter Reagan’s remarks, and that the advertisement employed “selective audio and video” to convey a misleading impression. “The ad misrepresents the Presidential Radio Address by President Reagan in 1987,” the foundation declared, adding that it was reviewing potential legal actions to protect the integrity of Reagan’s recorded materials.
The Canadian federal government in Ottawa refrained from issuing an immediate comment, and there was no confirmation as to whether Prime Minister Mark Carney’s office had prior knowledge of the provincial advertisement. Earlier in the day, however, Carney had told reporters that Canada would not accept what he termed “unfair U.S. access” to Canadian markets should broader trade negotiations with Washington collapse. His statement appeared to reflect growing unease within Canada about the durability of the 2020 United States–Mexico–Canada Agreement (USMCA), which the three countries are scheduled to review next year.
Trump’s decision continues his pattern of using tariff threats as leverage in international negotiations. Since his return to office, the administration’s trade policy has been characterized by renewed emphasis on national industrial protection and the strategic use of customs duties to pressure economic partners. The United States has, under Trump’s leadership, reached its highest overall tariff levels since the 1930s, drawing concern from economists and business associations that warn of potential disruptions to global supply chains and renewed inflationary pressure.
In Washington, analysts viewed the abrupt suspension of trade talks as both politically symbolic and economically risky. Canada remains the United States’ second-largest trading partner after Mexico, and any sustained deterioration in relations could have ripple effects across the North American industrial corridor, particularly in the automotive, metals, and agricultural sectors. U.S. Treasury officials did not immediately clarify whether the termination announcement applied to all forms of bilateral commercial dialogue or only to the specific negotiations on metals.
The episode demonstrates how the intersection of political messaging and trade diplomacy can rapidly destabilize cross-border relations. What began as a provincial media campaign invoking Reagan’s conservative legacy has now escalated into a diplomatic rift between two of the world’s most integrated economies. With the USMCA review approaching in 2026 and the global trading environment already strained by protectionist tendencies, both Washington and Ottawa face renewed challenges in preserving the economic interdependence that has long underpinned North American prosperity.
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