Trump Terminates Trade Talks with Canada After Controversial Reagan Ad Sparks Diplomatic Row

Key Points:

• President Donald Trump terminated all trade negotiations with Canada on October 24, 2025, citing a “fraudulent” advertisement by Ontario’s government.
• Ontario’s ₹75 million ad campaign featured unedited excerpts from Ronald Reagan’s 1987 speech warning against tariffs, aired widely across major U.S. networks.
• The Ronald Reagan Presidential Foundation condemned the ad for unauthorized use and misrepresentation, while Ontario defended it as public domain content.

Washington, Oct 2025 : US President Donald Trump on Thursday abruptly ended all ongoing trade negotiations with Canada, accusing Ontario’s government of producing a misleading advertisement that featured the late President Ronald Reagan criticising tariffs.

In a post on Truth Social, Trump wrote: “Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

The decision followed months of strained trade relations between Washington and Ottawa. Earlier this year, Trump imposed tariffs on Canadian steel, aluminium, and automobiles, prompting retaliatory duties from Canada. Both sides had been engaged in extended discussions aimed at resolving the dispute, particularly in the metals sector.

The diplomatic row was triggered by Ontario’s $75 million advertising campaign opposing tariffs. The television spots featured archival footage from Reagan’s 1987 radio address, in which he warned that protectionist policies “cost jobs and trigger trade wars.”

Ontario Premier Doug Ford said earlier this week that the ad had reached the White House. “I heard the President saw our ad. I’m sure he wasn’t too happy,” Ford remarked.

However, the Ronald Reagan Presidential Foundation sharply criticised the campaign, saying it distorted Reagan’s message. “The ad misrepresents the Presidential Radio Address delivered in 1987. The Government of Ontario did not seek nor receive permission to use or edit these remarks,” the foundation said in a statement, adding that it was reviewing possible legal action.

Ontario officials defended the ad, insisting that the Reagan speech excerpts were public domain content used to highlight the economic risks of tariff wars.

The Canadian federal government has so far refrained from commenting on Trump’s announcement.

Trump, known for using tariffs as leverage in global trade negotiations, has repeatedly defended protectionist policies as a means of boosting American manufacturing. Analysts warn, however, that his tariff-driven approach has pushed U.S. duties to their highest levels since the 1930s, disrupting supply chains and raising costs.

Canadian Prime Minister Mark Carney responded cautiously, stating that Canada “will not allow unfair U.S. access” to its markets if negotiations fail.

The fallout adds fresh uncertainty ahead of the 2026 review of the U.S.-Mexico-Canada Agreement (USMCA), the successor to NAFTA, potentially reshaping North American trade relations once again.

Team Maverick.