In a striking development on Thursday evening, President Donald Trump declared an end to “all trade negotiations” with Canada, citing a controversial television advertisement as the catalyst. The ad, which Trump claims misrepresented U.S. tariffs, was described by him as an “egregious behavior” intended to sway American judicial decisions.
This announcement followed remarks by Canadian Prime Minister Mark Carney, who expressed his intention to bolster Canada’s exports beyond the U.S. market, a move prompted by the perceived threat of Trump’s tariffs. The President’s decision to halt negotiations is likely to exacerbate the already strained trade relations between the two neighboring countries.
Trump’s social media post highlighted his grievances: “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 further asserted that the $75,000 ad aimed to influence U.S. Supreme Court decisions and other judicial outcomes.
Trump emphasized the importance of tariffs for the United States’ national security and economic well-being, declaring, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
Canada’s Prime Minister’s office was not immediately available for comments. As tensions rise, Carney was scheduled to depart for a summit in Asia on Friday morning, with Trump planning to follow suit later that evening.
Carney’s office didn’t immediately respond to a request for comment. The prime minister was set to leave Friday morning for a summit in Asia, while Trump is set to do the same Friday evening.
Earlier Thursday night, the Ronald Reagan Presidential Foundation and Institute posted on X that an ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks.”
The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.
Carney met with Trump earlier this month to try to ease trade tensions, as the two countries and Mexico prepare for a review of the U.S.-Mexico-Canada Agreement — a trade deal Trump negotiated in his first term, but has since soured on.
More than three-quarters of Canadian exports go to the U.S., and nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border daily.
Trump said earlier this week that he had seen the ad on television and said that it showed that his tariffs were having an impact.
“I saw an ad last night from Canada. If I was Canada, I’d take that same ad also,” he said then.
In his own post on X last week, Doug Ford, the premier of Ontario, posted a link to the ad and the message: “It’s official: Ontario’s new advertising campaign in the U.S. has launched.”
He continued, “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.”
A spokesperson for Ford didn’t immediately respond to a request for comment Thursday night. But Ford previously got Trump’s attention with an electricity surcharge to U.S. states. Trump responded by doubling steel and aluminum tariffs.
The president has moved to impose steep U.S. tariffs on many goods from Canada. In April, Canada’s government imposed retaliatory levies on certain U.S. goods — but it carved out exemptions for some automakers to bring specific numbers of vehicles into the country, known as remission quotas.
Trump’s tariffs have especially hurt Canada’s auto sector, much of which is based in Ontario. This month, Stellantis said it would move a production line from Ontario to Illinois
Associated Press Writer Rob Gillies in Toronto, Ontario, contributed to this report.
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