U.S terminates all trade talks with Canada

President Donald Trump has abruptly terminated all trade negotiations with Canada, citing a $53.5 million Ontario government advertisement featuring former U.S. President Ronald Reagan as “fraudulent” and misleading.

The ad, launched by Ontario Premier Doug Ford, highlighted the potential negative impact of U.S. tariffs on American families, farmers, and businesses. Using excerpts from a 1987 radio address by Reagan, the commercial warned that high tariffs ultimately backfire, shrinking markets and threatening jobs.

Trump took to Truth Social on Thursday to condemn the campaign, writing: “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

The Ronald Reagan Presidential Foundation & Institute also criticized the ad, saying it misrepresents Reagan’s words and that Ontario did not seek permission to use or edit the remarks.

The announcement intensifies tensions between the U.S. and Canada, coming as Prime Minister Mark Carney attempts to navigate a new bilateral relationship following Trump’s re-election. The president has already imposed tariffs on lumber, aluminum, steel, and automobiles and announced a 25% levy on heavy trucks beginning November 1.

Ford defended the ad, stating it is factual and educational. “We’re going to repeat that message to every Republican district across the country,” he said, adding that the commercial is “not nasty” and underscores Reagan as “the best president America has ever seen.”

The dispute puts Carney under domestic pressure, with critics warning that failure to secure concessions could hurt Canadian industries already strained by U.S. tariffs. Conservative opposition leader Pierre Poilievre urged the prime minister to return from Washington with tangible results.

The controversy comes amid Trump’s repeated threats to annex Canada or make it the “51st state,” rhetoric that has unsettled Canadian leaders, including former Prime Minister Justin Trudeau.