In a shocking announcement, President Donald Trump declared the end of “all trade negotiations” with Canada due to a controversial television advertisement that criticized U.S. tariffs. Trump described the ad as a misrepresentation of facts and labeled it “egregious behavior” designed to sway U.S. court decisions. This announcement was made on Trump’s social media platform late Thursday evening, escalating the already heightened trade tensions between the two nations.
The tensions escalated following remarks from Canadian Prime Minister Mark Carney, who expressed a goal to double Canada’s exports to nations outside the U.S. in light of the potential threats posed by Trump's tariffs. Trump’s abrupt decision to terminate trade negotiations could further complicate the relationship between the neighboring countries, which have been strained for several months.
In a post on his social media site, Trump claimed, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.” He continued, stating, “The ad was for $75,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts.” Trump emphasized the importance of tariffs by declaring, “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.”
Carney’s office has not yet responded to requests for comments regarding Trump’s statements. The Prime Minister was set to depart for an Asia summit Friday morning, while Trump is scheduled to leave later that evening. Trump continued to express his frustration on social media, declaring, “CANADA CHEATED AND GOT CAUGHT!!!” and asserted the strength of the U.S. economy, attributing it to the implementation of tariffs.
Earlier on Thursday, the Ronald Reagan Presidential Foundation and Institute issued a statement on X, condemning the Ontario government’s advertisement for misrepresenting Reagan’s 1987 address on trade. The foundation stated that Ontario did not have permission to use or edit the remarks, and mentioned they are considering legal options regarding this matter. They also encouraged the public to view the unedited video of Reagan's original address.
Trump's comments regarding the Supreme Court refer to an upcoming case where justices will evaluate the legality of his extensive tariffs. Two lower courts previously determined that Trump cannot unilaterally impose broad tariffs without congressional approval. However, the Trump administration maintains that he has the authority to regulate imports, which encompasses tariff policy.
In an attempt to ease trade tensions, Carney met with Trump earlier this month. The discussions were part of ongoing preparations for a review of the U.S.-Mexico-Canada Agreement (USMCA), a trade deal that Trump negotiated during his presidency but has since criticized. Notably, more than three-quarters of Canadian exports are directed to the U.S., with nearly $3.6 billion Canadian (approximately $2.7 billion U.S.) worth of goods and services crossing the border daily.
This month, Trump remarked that he had seen the controversial ad on television, suggesting it demonstrated the effectiveness of his tariffs. Ontario Premier Doug Ford also highlighted the ad on social media, asserting that Ontario would use every possible avenue to advocate against American tariffs, emphasizing the importance of cooperation for mutual prosperity.
Ford previously captured Trump’s attention with a U.S. electricity surcharge, prompting Trump to double steel and aluminum tariffs in response. The tariffs imposed by Trump have significantly impacted Canada’s automotive sector, particularly in Ontario, where many manufacturing operations are based. Recently, Stellantis announced the relocation of a production line from Ontario to Illinois, highlighting the ongoing repercussions of these trade tensions.
As the situation unfolds, both nations will be watching closely, as the ramifications of the halted trade negotiations could have long-lasting effects on their economies and bilateral relations.
