Trump Terminates All Trade Talks with Canada Over Reagan Anti-Tariff Ad

Washington, D.C. – In a dramatic escalation of trade tensions, President Donald Trump has announced the immediate termination of "all trade negotiations" with Canada. The abrupt decision, posted late Thursday on his social media platform, was in direct retaliation for a multi-million-dollar television advertisement campaign sponsored by the Ontario provincial government that uses footage of former U.S. President Ronald Reagan to criticize U.S. tariffs.

The Controversial Ontario Ad and Trump's Response

The $75 million ad campaign, launched by Ontario Premier Doug Ford's government, has been airing on major U.S. networks. The central element of the ad is an excerpt from a 1987 radio address by President Reagan, where he warns that high tariffs "inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars," which cause "millions of people lose their jobs."

President Trump condemned the advertisement, accusing Canada of "fraudulent" and "egregious behavior." On his social media platform, he stated:

"The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs...They only did this to interfere with the decision of the U.S. Supreme Court, and other courts... Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED."

 The Ronald Reagan Presidential Foundation and Institute confirmed the dispute, posting that the Ontario ad "misrepresents the 'Presidential Radio Address to the Nation on Free and Fair Trade' dated April 25, 1987" and that the government of Ontario did not seek or receive permission to use and edit the remarks. The Foundation is currently "reviewing its legal options."

A spokesperson for Ontario Premier Doug Ford defended the campaign, claiming the commercial used an "unedited excerpt from one of President Reagan's public addresses, which is available through public domain," and argued that "Reagan knew and spoke directly to Americans that tariffs hurt the U.S. economy, workers and families."

Attempt to Influence the Supreme Court Case

The primary reason cited by Trump for terminating talks, the ad's alleged intent to "interfere" with U.S. court decisions is in reference to a major legal challenge currently before the U.S. Supreme Court.

• The Case: The Supreme Court is scheduled to hear arguments on November 5 regarding the legality of Trump's sweeping global tariffs.
• The Core Issue: The challenge centers on whether the President has the authority under the International Emergency Economic Powers Act (IEEPA) to unilaterally impose such wide-ranging tariffs.
• Lower Court Rulings: Two lower courts have previously ruled against the Trump administration, finding that the IEEPA's delegation of power to "regulate... importation" does not grant the President unlimited power to levy tariffs. The Supreme Court's upcoming decision is seen as one of the most important rulings on presidential trade authority in modern U.S. history.

Impact on Canada-U.S. Trade and the USMCA Review

The termination of talks comes at a particularly fraught moment for the two neighboring countries.

• Canadian Strategy: Just hours before Trump's announcement, Canadian Prime Minister Mark Carney signaled a major shift in Canada's trade strategy, stating his aim to double Canada's exports to markets outside the U.S. to reduce the country's economic vulnerability to American tariffs. Carney's office has not yet responded to the termination of negotiations.
• USMCA Review: The breakdown in talks also threatens to inflame tensions ahead of the mandated 2026 review of the U.S.-Mexico-Canada Agreement (USMCA). This trade deal, negotiated in Trump's first term, requires a review by all three nations by July 2026. The rising trade war rhetoric, which has already seen Trump impose steep tariffs on Canadian goods, particularly hurting its auto sector and Canada respond with retaliatory levies, casts a pall of uncertainty over the future of the entire North American free trade zone.

More than three-quarters of Canadian exports go to the U.S., with nearly $3.6 billion (Canadian) worth of goods and services crossing the border daily, underscoring the high stakes of the trade dispute.