Trump halts trade talks with Canada over TV ad mocking U.S. tariffs

U.S. President Donald Trump has announced the suspension of trade negotiations with Canada following a television advertisement that criticized American tariffs.

Trump made the declaration on Thursday, October 24, saying the talks were “terminated‏” in response to an advert released by Ontario’s provincial government. The ad featured edited audio from a 1987 speech by former U.S. President Ronald Reagan, in which he condemned tariffs for harming “every American worker and consumer” and sparking “fierce trade wars.”

The Reagan Foundation later accused the Ontario government of misusing the late president’s words, saying the clip was taken out of context and used without permission. The full speech, available on the Reagan Library’s YouTube channel, shows Reagan promoting free and fair trade while reluctantly justifying temporary tariffs against Japan.

Reacting on Truth Social, Trump blasted the ad, calling it “FAKE” and “fraudulent.” He claimed the video was designed to “interfere with the decision of the U.S. Supreme Court, and other courts,” while insisting that tariffs were vital to America’s economic and national security interests. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” he wrote.

In a separate post, Trump wrongly asserted that Reagan “loved tariffs,” saying the ad distorted the former president’s views.

Canadian Prime Minister Mark Carney responded on Friday, saying Canada “can’t control U.S. trade policy,” but expressed hope that talks could resume. “We’ve made a lot of progress,” he said. “We stand ready to build on that progress when the Americans are ready because it will benefit workers and families in both countries.”

Trade relations between the U.S. and Canada have been strained since Trump took office, marked by disputes over tariffs on steel, aluminum, autos, lumber, and energy. Despite recent diplomatic efforts to rebuild ties, this latest move threatens to derail months of progress under the U.S.-Mexico-Canada Agreement (USMCA).

Before Trump’s announcement, Carney had unveiled plans to double Canada’s non-U.S. exports within a decade, emphasizing the need to diversify the nation’s trade partnerships and reduce reliance on a single market.