Trump Abruptly Ends Trade Talks with Canada over ‘Fake’ Reagan Tariff Ad

In a dramatic escalation of tensions between Washington and Ottawa, U.S. President Donald Trump on Thursday announced the immediate suspension of trade negotiations with Canada, accusing the government of Ontario of airing a “fake” advertisement that misrepresented the late President Ronald Reagan’s stance on tariffs.

The announcement came less than three weeks after what appeared to be a cordial White House meeting between Trump and Canadian Prime Minister Mark Carney, where both leaders expressed optimism about ongoing discussions to ease U.S. tariffs on key Canadian exports.

Taking to his Truth Social platform, Trump blasted the ad as “fraudulent” and “deceptive,” alleging that it misquoted Reagan in an attempt to influence a pending U.S. Supreme Court decision on his global tariff policies.

“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump declared, in his typically forceful style.

The controversial advertisement — produced by the Ontario provincial government — was set to air on American television networks. It featured Reagan warning of the dangers of high tariffs leading to “retaliation by foreign countries” and “fierce trade wars.”

While those words were drawn from a 1987 radio address archived by the Ronald Reagan Presidential Library, the Reagan Foundation accused Ontario officials of using “selective audio and video” that misrepresented the late president’s intent. In a statement posted on X (formerly Twitter), the foundation said it was “reviewing its legal options,” asserting that the ad’s editing “distorted Reagan’s meaning” and presented a “false narrative” about his trade philosophy.

The fallout has sent shockwaves through diplomatic circles in both countries. Officials in Ottawa have not yet responded to Trump’s announcement, but the rupture threatens to derail months of behind-the-scenes negotiations aimed at reducing U.S. tariffs on steel, aluminum, and automobile imports from Canada — measures that have already triggered significant job losses across Canadian manufacturing sectors.

Prime Minister Carney, in a budget speech on Wednesday, had warned that Washington’s newly “transformed trade posture” was forcing Canada to rethink its entire economic strategy. “The United States has raised its tariffs to levels last seen during the Great Depression,” Carney said. “These developments are not a smooth transition — they are a rupture.”

Carney’s remarks now appear prescient. His government had expressed cautious optimism about a potential breakthrough, emphasizing that Canada remained committed to the United States–Mexico–Canada Agreement (USMCA), which guarantees that roughly 85 percent of bilateral trade remains tariff-free.

Trump’s renewed push for sweeping global tariffs has unsettled traditional allies, with Canada particularly vulnerable due to its deep integration into the North American manufacturing supply chain. Analysts say the president’s decision could have far-reaching implications for cross-border trade, inflation, and regional cooperation.

Despite the political drama, the U.S. and Canada are expected to continue honoring their obligations under the USMCA until its scheduled review in 2026. Both Trump and Carney are slated to attend upcoming international summits — the ASEAN meeting in Malaysia and the APEC Forum in South Korea — where trade is expected to dominate discussions.

For now, Trump’s move underscores how quickly diplomacy can unravel in the era of personal politics and online outrage — and how a single ad can ignite a storm capable of upending one of the world’s most stable trading relationships.