Trump cancels trade deal with Canada due to anti-tariff ad

U.S. President Donald Trump announced the immediate suspension of all trade talks with Canada after an ad criticized the tariffs he had imposed on the country.

The ad, sponsored by the Canadian provincial government of Ontario, quotes President Trump’s predecessor, Ronald Reagan, an icon of American conservatism, saying that tariffs “harm all Americans.”

President Trump wrote on social media that the ad was “fake” and “serious,” adding that trade talks “are thus over.”

His administration not only imposed a 35% tariff on many Canadian imports, but also individual tariffs targeting specific industries such as automobiles and steel manufacturing. Ontario has been particularly hard hit by this.

President Trump granted exemptions for products covered by free trade agreements (FTAs) with Mexico and Canada negotiated during his first term.

But Canadian Prime Minister Mark Carney has been trying to reach a deal to ease U.S. tariffs since being elected earlier this year.

This is complicated by Ontario Premier Doug Ford, who has been one of the most vocal critics of taxes levied on U.S. companies that buy Canadian products.

In the minute-long ad, which ran last week, Reagan’s voice can be heard describing images that include the New York Stock Exchange and cranes decorated with U.S. and Canadian flags.

This video is an excerpt from Reagan’s 1987 national radio address that focused on foreign trade.

“When someone says, ‘Let’s put tariffs on foreign imports,’ it looks like they’re doing the patriotic thing by protecting American products and jobs. And sometimes that works, but only for a brief moment,” Reagan said in the ad.

“But in the long run, such trade barriers harm all Americans, workers and consumers.

“High tariffs inevitably lead to foreign retaliation and the triggering of fierce trade wars… markets shrink and collapse, businesses and industries close, and millions of people lose their jobs.”

The Ronald Reagan Foundation, which is charged with preserving Reagan’s legacy, said in a statement Thursday that the ad used “selective” audio and video of the former president’s remarks.

The ad “misrepresented” the former president’s speech without giving a reason and accused the Ontario government of not seeking permission to use and edit the remarks.

The foundation said it was “reviewing legal options.”

Referring to the statement, President Trump said the video was designed to “interfere” with the U.S. Supreme Court’s upcoming November decision on whether sweeping U.S. tariffs on products from many countries are legal.

The court’s decision represents the biggest test yet of President Trump’s authority and key economic policies, potentially requiring him to refund billions of dollars in tariffs collected by the United States.

The minute-long ad contains only excerpts from the original five-minute speech, but Reagan’s words remain unchanged.

The order of writing comments has changed. The second sentence of the ad is taken from the beginning of his speech, and the phrase that appears about halfway through the ad is likewise taken from an earlier point in the address.

The original address, titled Address to the Nation on Free and Fair Trade, concerned certain tariffs that the Reagan administration at the time had imposed on some Japanese goods.

Reagan intends to use the speech to explain why tariffs were introduced in this “special case” despite his belief that “to impose such tariffs or trade barriers and restrictions of any kind is a step I would not like to take.”

He has made it clear that he wants to lift it as quickly as possible “to foster the prosperity and economic development that only free trade can bring.” He emphasized this position throughout his speech.

The ad ran on mainstream American TV channels as part of a campaign worth CAD 75 million (£40 million, $54 million).

In a post accompanying the ad, Ford wrote, “We will never stop arguing against U.S. tariffs on Canada.”

The Chinese Embassy in Washington also used a similar Reagan clip in a post about X earlier this year to raise questions about Trump’s global tariffs.

Ontario, Canada’s most populous province and largest regional economy, has suffered the most from U.S. tariffs.

Ford hit back after President Trump threatened to impose tariffs on Canada, saying it intends to cut off power supplies to the United States.

He also described U.S. trade policy toward Canada as pulling a sword and “stabbing it at us” and urged U.S. lawmakers to put pressure on Trump.

Trump’s sectoral levies on Canadian goods include a 50% levy on metals and a 25% levy on automobiles.

The White House’s global tariffs, particularly on steel, aluminum and automobiles, are hitting Canada hard, causing job losses and putting pressure on businesses.

Carney and Ford have not yet commented on Trump’s announcement.

This is the second time that President Trump has said he is suspending trade talks with Canada, after Ottawa announced earlier this year that it would impose a digital services tax on U.S. technology companies.

When Canada repealed the tax, the White House said Carney “gave in” to pressure from Trump.