Donald Trump has declared an immediate halt to all trade negotiations with Canada following a television ad opposing US tariffs that featured former President Ronald Reagan. The advertisement, funded by the government of Ontario, Canada, includes clips from a 1987 speech in which Reagan states, “trade barriers hurt every American worker.”
On his Truth Social platform, Trump claimed Canada “fraudulently used an advertisement,” which he labeled as “FAKE,” and accused the country of interfering with US court rulings on tariffs. He wrote, “Based on their egregious behavior, all trade negotiations with Canada are hereby terminated.” US Secretary of State Marco Rubio confirmed on Friday that all trade talks with Ottawa had been suspended. Trump later added on Truth Social that “Canada cheated and got caught,” alleging the ad aimed to influence the US Supreme Court hearings on the legality of his global tariffs, set to begin on November 5.
The US initially imposed a 25% tariff on Canadian imports like timber, steel, aluminum, and cars in the spring, leading to retaliatory measures from Ottawa. Trump increased the rate to 35% in August. Ontario has been particularly affected by the escalating trade war, with its premier, Doug Ford, being a prominent critic of the US tariffs.
Ford launched the ad campaign featuring Reagan’s remarks in early October, stating on Instagram, “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”
The minute-long ad, targeting a US audience, shows excerpts from Reagan’s presidential radio address over images of workers, families, the New York Stock Exchange, and cargo ships with US and Canadian flags. The original 1987 speech was delivered during trade tensions with Japan, shortly after Reagan imposed import duties on Japanese products like computer chips.
In the clip, Reagan says, “When someone says: ‘Let’s impose tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products and jobs. And sometimes, for a short while it works, but only for a short time. But over the long run, such trade barriers hurt every American worker and consumer.”
The Ronald Reagan Presidential Foundation & Institute, which promotes his legacy, posted on X that Ontario did not seek or receive permission to use the clips. They stated the ad uses “selective audio and video” and “misrepresents” Reagan’s comments, adding they are “reviewing legal options.” Trump referenced this criticism in his post.
Ford responded on X, writing, “Canada and the United States are friends, neighbours and allies. President Ronald Reagan knew that we are stronger together.”
Canadian Prime Minister Mark Carney expressed disappointment over Trump’s decision to raise tariffs in August. The two leaders met earlier this month to ease trade tensions and prepare for a review of the US-Mexico-Canada Agreement, a trade deal negotiated during Trump’s first term that has since deteriorated.
Over three-quarters of Canadian exports go to the US, with nearly C$3.6 billion worth of goods and services crossing the border daily.Business Today
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Carney has stated he will continue negotiations with the U.S. and also focus on reducing trade barriers within Canada to attract new investment, encourage consumers to buy Canadian-made products, and diversify export markets.
Meanwhile, the Trump administration is taking a tougher stance toward other countries, including imposing the first sanctions on Russia since his return to the White House.
On Wednesday, Washington announced sanctions against Russia’s two largest oil companies, Rosneft and Lukoil, increasing pressure on the Kremlin to negotiate an end to its war in Ukraine.
U.S. Treasury Secretary Scott Bessent is scheduled to meet China’s Vice-Premier He Lifeng in Malaysia on Friday for trade discussions, amid rising trade tensions between the two nations. Trump is also set to hold his first meeting with Chinese President Xi Jinping later this month in South Korea during his second term.
In a 1987 speech, Reagan defended the principle of free but fair trade, explaining his decision to impose tariffs on Japanese goods during a trade dispute.
In his full five-minute address, the then-president expressed reluctance to levy tariffs on Japan but felt compelled to do so to enforce a trade agreement on semiconductors and electronic devices.
Reagan went on to issue a strong warning about the dangers of trade protectionism, noting how it exacerbated the hardships of the Great Depression in the 1930s.
He stated, “High tariffs inevitably provoke retaliation from other countries and ignite fierce trade wars. The result is devastating: markets shrink and collapse, businesses and industries close down, and millions of people lose their jobs.”
Frequently Asked Questions
Of course Here is a list of FAQs about the scenario where former President Trump declared trade negotiations with Canada were called off due to a critical advertisement
Basic Factual Questions
1 What actually happened
A public advertisement criticized tariffs imposed by the former administration In response former President Trump announced that all trade negotiations with Canada were being canceled
2 What are tariffs
Tariffs are taxes that a government places on goods imported from another country They make foreign products more expensive which is meant to protect a countrys own industries
3 What is the USMCA
The USMCA is the trade deal that governs most trade between the US Mexico and Canada It replaced the older NAFTA agreement
4 Were negotiations officially happening when this was called off
This is a key detail that is often unclear Governments are often in continuous lowlevel discussions about trade but its not always a formal highstakes negotiation The announcement was likely a reaction to the ad regardless of the official state of talks
Impact Consequences
5 What does calling off negotiations mean for me as a consumer
In the short term probably very little In the long run it could mean higher prices or less selection for goods that come from Canada if trade relations worsen and tariffs increase
6 How could this affect businesses
Businesses that rely on supply chains with Canada could face uncertainty and higher costs For example a car manufacturer that uses Canadianmade parts might see its expenses rise potentially leading to higher car prices or layoffs
7 Is this a common reason to stop trade talks
No it is highly unusual Trade negotiations are typically called off due to major irreconcilable policy differences not in direct reaction to a single advertisement This highlights how political and public relations can directly influence economic policy
8 Could this violate the USMCA trade agreement
Not directly The USMCA sets the rules for trade but it doesnt force countries to negotiate new deals However a complete breakdown in communication and cooperation could create a hostile environment that might lead to future disputes within the USMCA framework
Deeper Analysis Context
