US President Donald Trump has announced an immediate halt to all trade negotiations with Canada, citing what he described as “egregious behaviour” by the Canadian government.
In a post on Truth Social late Thursday, Trump said his decision followed the release of a Canadian advertisement featuring former US President Ronald Reagan speaking critically about tariffs.
“Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” he wrote.
The president has already imposed a 35% tariff on Canadian imports but granted exemptions for goods covered under the USMCA — the free trade agreement with Mexico and Canada that he negotiated during his first term.
Trump accused the video’s sponsor, the Ontario government, of attempting to “interfere with” the US Supreme Court ahead of a key ruling in November that will determine the legality of his administration’s sweeping global tariffs. The outcome could have major implications, potentially forcing the US to refund billions of dollars in collected tariffs.
The Controversial Advert
The minute-long advert, released last week, features excerpts from a 1987 radio address by Ronald Reagan warning against protectionism and high tariffs. Set against images of the New York Stock Exchange and cranes displaying both US and Canadian flags, Reagan’s voice is heard saying:
“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 over the long run, such trade barriers hurt every American worker and consumer.”
He continues: “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Markets shrink and collapse, businesses shut down, and millions lose their jobs.”
Reaction from the Reagan Foundation
The Ronald Reagan Foundation issued a statement on X, saying the Ontario government “did not seek nor receive permission to use or edit” the former president’s remarks, accusing the advert of “misrepresenting” Reagan’s original message. The foundation added that it is “reviewing its legal options.”
Doug Ford Responds
Ontario Premier Doug Ford, who has been an outspoken critic of Trump’s trade policies, shared the advert online with the caption: “We’ll never stop making the case against American tariffs on Canada.”
Ford, whose province has been hit particularly hard by US tariffs — especially in the auto and steel industries — has previously clashed with Trump over trade. He once threatened to cut off electricity exports to the US and accused Washington of having “pulled a knife and yanked it into us.”
The Ontario government reportedly spent 75 million Canadian dollars (£40 million; $54 million) to air the campaign on major US television networks.
Economic Fallout
Trump’s new tariffs including a 50% levy on metals and 25% on automobiles have intensified economic pressure on Canada, leading to factory job losses and business struggles, particularly in Ontario.
Meanwhile, China’s embassy in Washington earlier this year shared a similar Reagan clip on X, using it to question the wisdom of Trump’s global tariff policies.
As of Friday, neither Doug Ford nor former Bank of England governor Mark Carney had commented on Trump’s latest announcement.
