Trump halts Canada trade talks over Ontario’s Reagan ad

Canadian Prime Minister Mark Carney said Friday his government is ready to resume constructive negotiations

Trade talks between the U.S. and Canada collapsed this week after Ontario aired an anti-tariff ad featuring former President Ronald Reagan. (Photo: Jim Allen/FreightWaves)
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Key Takeaways:

  • President Trump abruptly suspended trade negotiations with Canada after Ontario's provincial government aired a U.S. TV ad featuring Ronald Reagan criticizing tariffs, which the White House and Reagan Foundation called "fraudulent" and out of context.
  • Despite the Reagan Foundation considering legal action, Ontario defended its ad; Canadian Prime Minister Carney stated his government remains ready to resume constructive negotiations.
  • The suspension occurs as Canada seeks relief from U.S. tariffs on steel, aluminum, and automobiles—tariffs that have impacted Canadian manufacturing—and just months before a USMCA review and a Supreme Court hearing on tariff constitutionality.
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President Donald Trump abruptly suspended trade negotiations with Canada on Thursday after Ontario’s provincial government aired a TV ad in U.S. markets featuring former President Ronald Reagan saying that tariffs “hurt every American worker.” 

The White House accused Ontario of misusing Reagan’s 1987 remarks, prompting Trump to denounce the ad as “fraudulent” and call off all talks with Canada.

Canadian Prime Minister Mark Carney said Friday that his government “stands ready to resume constructive negotiations” once Washington is prepared to engage, according to Reuters

Carney has sought to secure relief from Trump’s 25% to 35% tariffs on Canadian steel, aluminum and automobiles, which have battered manufacturing provinces such as Ontario.

The Reagan Presidential Foundation criticized Ontario’s ad for taking the former president’s comments out of context and said it was considering legal action, according to NBC. Ontario Premier Doug Ford defended the ad, reposting the full five-minute Reagan excerpt and insisting it was drawn from public-domain material.

The breakdown comes just months before a six-year review of the U.S.–Mexico–Canada Agreement (USMCA) and weeks ahead of a Supreme Court hearing on whether Trump’s emergency-powers tariffs are constitutional.
Canada was the second largest trade partner of the U.S. in July at $58.3 billion, according to the latest data available from the Census Bureau.

Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com