WASHINGTON (TECHY QUANTUM) — President Donald Trump said Thursday night that he was ending all US trade negotiations with Canada after Ontario’s government aired an advertisement featuring former President Ronald Reagan criticizing tariffs.
The move marks one of the sharpest escalations in cross border tensions since the renegotiation of the US Mexico Canada Agreement.
In a post on Truth Social, Trump accused Canada of using “a fake advertisement” that, he said, manipulated Reagan’s words for political purposes. “Based on their egregious behavior, all trade negotiations with Canada are hereby terminated,” Trump wrote.
The controversy began earlier this month when Ontario Premier Doug Ford announced a $75 million campaign to air commercials across the United States opposing tariffs.
The ad features audio of Reagan from an April 1987 radio address, warning that protectionist policies “may look patriotic” but “hurt every American worker and consumer over the long run.”
The Ronald Reagan Presidential Foundation and Institute said Ontario’s use of the clip “misrepresents the context” of Reagan’s remarks and that permission had not been granted. The foundation urged viewers to listen to the unedited version on its official YouTube channel.
Ford defended the campaign, calling himself “a big Ronald Reagan fan” and saying he wanted to remind Americans of Reagan’s “pro free trade message.” The ad, he added, was aimed at “Republican districts across the country” where tariffs remain a divisive political issue.
Trump, who has made tariffs a central part of his second term economic platform, responded by ending all formal trade talks between Washington and Ottawa.
Trade analysts say Trump’s decision reflects both political calculation and economic risk. “The timing is significant, said Laura Kendall, a senior fellow at the Atlantic Trade Forum in Washington.
“With the Supreme Court set to review the scope of presidential tariff powers next month, the administration is signaling that it won’t tolerate foreign attempts to influence the debate.”
Others see the move as potentially damaging to long standing economic ties. Canada and the United States share one of the world’s most integrated trade relationships, said Jean Marc Dupuis, professor of international economics at McGill University.
“Terminating negotiations, even temporarily, could unsettle industries that rely on predictable cross border rules.” Canada is the United States’ largest trading partner, accounting for nearly $800 billion in goods and services traded annually.
Roughly 75 percent of Canadian exports go to the US, while millions of American jobs depend on Canadian supply chains, especially in automotive manufacturing, energy and agriculture.
Before this latest dispute, both governments had been preparing for the scheduled 2026 review of the US Mexico Canada Agreement (USMCA). Analysts warn that Trump’s suspension of talks could delay that process.
“If talks remain frozen, the automatic review of the USMCA becomes more complicated,” Kendall said. “Businesses on both sides will face uncertainty just as global supply chains are recovering.”
In Ontario, reaction was mixed. Supporters of Ford’s campaign said the ad simply echoed Reagan’s long held belief in open markets.
“Reagan stood for free trade that’s all we wanted to highlight,” said local business owner Daniel McKay from London, Ontario. “It’s ironic that quoting him has now sparked a trade crisis.”
Others accused the provincial government of political recklessness. This is not the time to provoke Washington, said Nancy Wright, a manufacturing lobbyist based in Toronto. “Our exporters will pay the price for a television ad.”
In the US opinion was equally divided. Some factory workers in Michigan and Ohio backed Trump’s stance, arguing that tariffs protect local jobs. Others feared a retaliatory spiral that could raise prices and disrupt production.
“We can’t afford another trade war,” said Charles Henderson, an auto parts supplier in Detroit. “Every time talks break down, it’s small businesses like ours that suffer first.”
While Canada has not formally responded to Trump’s announcement, diplomatic officials in Ottawa said they were “seeking clarification” from Washington and would “pursue dialogue at the earliest opportunity.”
Trade experts say both sides have incentives to de-escalate. The US election cycle and the USMCA review give Washington and Ottawa reasons to restore stability.
Yet the dispute also shows how political messaging in this case, a provincial television ad can rapidly spill into international policy.
This is a classic example of how domestic politics and trade policy can collide, Dupuis said. “The economic fallout could be much broader than the issue that caused it.”
Trump’s decision to terminate trade negotiations with Canada over an Ontario advertisement featuring Ronald Reagan adds a new layer of volatility to North American relations.
While the disagreement stems from a symbolic political message, its implications extend to industries, consumers and future regional trade agreements.
As both nations weigh next steps, the episode underscores the delicate balance between political rhetoric and economic interdependence and how quickly a message meant for television can echo through global markets.