President Donald Trump has abruptly terminated all trade negotiations with Canada, escalating tensions between Washington and one of its closest trading partners.
The decision came after the US President accused Canada of using a “fake” advertisement featuring former U.S. President Ronald Reagan criticizing tariffs, a move he described as “egregious behaviour.”
“Tariffs are very important to the national security and economy of the U.S.A. Based on their egregious behaviour, all trade negotiations with Canada are hereby terminated,” Trump wrote on his Truth Social on October 23.
The statement immediately cast doubt on the future of the two nations’ economic cooperation, particularly as both sides were preparing for a review of the North American Free Trade Agreement.
The Controversial Reagan Ad
At the center of the diplomatic fallout is an advertisement funded by the government of Ontario.
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The province reportedly spent 75 million Canadian dollars (approximately USD 53.5 million) to broadcast the ad in the United States.
It began airing during a Toronto Blue Jays game last week and was expected to continue for two weeks.
The ad features selected audio from Ronald Reagan’s April 1987 radio address, in which he warned Congress about the dangers of protectionist trade policies.
“Markets shrink and collapse, industries shut down, and millions of people lose their jobs,” Reagan’s voice is heard saying in the advert.
The Ronald Reagan Presidential Foundation and Institute issued a statement saying that the Ontario government had used “selective audio and video” from Reagan’s speech and that the advert “misrepresents the Presidential Radio Address.”
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This clarification appeared to trigger Trump and his decision, with the president responding hours later by posting that Canada had “fraudulently used an advertisement, which is fake, featuring Ronald Reagan speaking negatively about tariffs.”
Political Fallout and Economic Implications
The termination of trade talks marks another setback in the already strained U.S.-Canada relationship.
Trump and his administration had earlier imposed a 35 per cent tariff on Canadian steel, auto parts, and other exports, measures he justified as vital to national security.
Canadian officials have repeatedly condemned the tariffs, arguing they harm both economies.
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