US President Donald Trump has terminated trade negotiations with Canada over an anti-tariff advertisement featuring Ronald Reagan, which he accused of being fake and aimed at influencing court cases on the legality of his tariffs.
The dispute arose after Trump imposed a 25% tariff on Canadian timber, steel, aluminum, and cars as part of a broader drive against what he called unfair trade practices. Ottawa retaliated by launching a social ad campaign featuring a 1987 speech by Reagan urging Americans to reject protectionist legislation and promote fair and free competition. The ad, which quotes Reagan’s warnings that trade barriers hurt American workers and lead to trade wars, was released by Ontario, which has been heavily impacted by the tariffs.
In response, Trump accused Canada of using the ad to sway US court hearings on the legality of his tariffs. He claimed the ad was fraudulent and used Reagan’s remarks to undermine his policies, leading him to terminate all trade talks with Canada. Meanwhile, the Supreme Court is set to rule on whether Trump had the authority to impose the tariffs, with the duties remaining in effect until the decision. Canada has yet to respond, though Prime Minister Mark Carney stated his government would block unfair US market access if further talks fail, with a potential meeting scheduled at an economic summit in South Korea.