President Donald Trump announced on Thursday that he was terminating all trade negotiations with Canada, citing what he described as a misleading television advertisement produced by Ontario that misrepresented Ronald Reagan’s views on tariffs.
In a social media post, Trump accused Canada of using Reagan’s audio out of context in a video “which is FAKE,” asserting that it was intended to influence ongoing U.S. judicial decisions. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” he wrote.
The dispute centers on a public service advertisement aired by Ontario’s provincial government that featured clips from Reagan criticizing tariffs. Trump argued the ad “fraudulently” used and edited Reagan’s remarks and said “it was done to interfere with the decision of the U.S. Supreme Court.”
The Ronald Reagan Presidential Foundation responded sharply, stating that the advertisement “misrepresents the Presidential Radio Address … and the Government of Ontario did not seek permission to use and edit the remarks.” The foundation also said it is reviewing legal options.
Canada’s response was more measured. Prime Minister Mark Carney said Canada is ready to resume talks, emphasizing that his government had been engaging in “detailed, constructive negotiations” on sectors like steel, aluminium and autos.
White House economic adviser Kevin Hassett described Trump’s decision as the culmination of mounting frustration with the Canadian negotiating stance. He told reporters: “The Canadians have been very difficult to negotiate with … the fact that we’re now negotiating Mexico separately … reveals that it’s not just about one ad.”
This dramatic reversal threatens to strain a trade relationship that has already been tense. Earlier in 2025, the U.S. imposed sweeping tariffs on many Canadian goods, citing national security, and Canada responded with retaliatory levies. Nevertheless, much of bilateral trade remains under the protection of the USMCA agreement, where exemptions shield certain goods.
Analysts warn that pulling back from negotiations entirely could disrupt supply chains, especially in key sectors like automotive, energy and manufacturing, and could deter further foreign investment in both countries. The move also raises questions about how much commercial diplomacy in the U.S. is influenced by domestic politics, media, and symbolism.
As of now, no new tariffs or trade policy shifts have been enacted in direct response to the announcement, but Trump indicated that Canada would be informed “within the next seven days” of new tariff obligations if trade relations are to remain.
