Donald Trump has announced an immediate suspension of all trade negotiations with Canada following the release of a television advertisement by the Ontario government that quoted former United States president Ronald Reagan in criticism of tariffs.
The advertisement, launched earlier this month, features excerpts from a 1987 radio address in which Reagan warned that “trade barriers hurt every American worker”. The minute-long clip, aimed at a US audience, was part of a campaign by Ontario premier Doug Ford to highlight the economic damage caused by Washington’s escalating tariffs on Canadian goods.
Trump responded angrily on his Truth Social platform, accusing Canada of “fraudulently” using the material and calling the advert “FAKE”. He further alleged that Ottawa was attempting to interfere with US court decisions on tariffs. “Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” he wrote.
The dispute comes amid a worsening trade conflict between the two countries. Washington first imposed a 25 per cent tariff on Canadian imports, including timber, steel, aluminium and cars, in the spring. Ottawa retaliated with its own measures, but in August Trump raised the US tariff rate to 35 per cent, intensifying the confrontation. Ontario, heavily reliant on cross-border trade, has been particularly affected.
Premier Ford has been one of the most outspoken critics of the tariffs. Announcing the advertising campaign, he said: “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 advert juxtaposes Reagan’s words with images of workers, families, the New York Stock Exchange, and cargo ships flying both US and Canadian flags.
The Ronald Reagan Presidential Foundation & Institute has criticised the use of the material, stating that Ontario had not sought or received permission to include the clips. In a statement, the organisation said the advert employed “selective audio and video” and “misrepresents” Reagan’s comments. It added that it was “reviewing its legal options”. Trump cited the foundation’s remarks in his own denunciation of the campaign.
Reagan’s 1987 address was delivered at a time of trade tensions between the United States and Japan, shortly after his administration had imposed duties on Japanese computer chips. While acknowledging that tariffs could sometimes provide short-term relief, Reagan warned of the long-term dangers of protectionism. “Over the long run, such trade barriers hurt every American worker and consumer,” he said. In the full statement, he also linked high tariffs to the economic collapse of the 1930s, warning that “markets shrink and collapse, businesses and industries shut down and millions of people lose their jobs”.
Canadian prime minister Mark Carney has expressed disappointment at Trump’s decision to raise tariffs in August. The two leaders met earlier this month in an effort to ease tensions and prepare for a review of the US-Mexico-Canada Agreement, the trade pact negotiated during Trump’s first term but now under strain. Carney has pledged to continue negotiations while also seeking to reduce internal Canadian trade barriers and diversify export markets. More than three-quarters of Canadian exports are destined for the United States, with goods and services worth nearly C$3.6 billion crossing the border each day.
The dispute with Canada comes as Washington adopts a more confrontational stance towards other trading partners. On Wednesday, the United States imposed sanctions on Russia’s two largest oil companies, Rosneft and Lukoil, in an effort to increase pressure on Moscow to end its war in Ukraine. Meanwhile, Treasury Secretary Scott Bessent is due to meet Chinese vice-premier He Lifeng in Malaysia on Friday for trade talks, ahead of Trump’s first meeting of his second term with Chinese president Xi Jinping in South Korea later this month.
The fallout from Ontario’s advertisement has added a new dimension to already fraught relations between Washington and Ottawa. With both sides entrenched, the prospect of a swift resolution to the trade dispute appears increasingly remote.
