UPDATE: President Donald Trump has just announced the termination of all trade negotiations with Canada, a move sparked by a controversial anti-tariff advertisement from the province of Ontario. This dramatic decision, shared on Truth Social late Thursday, underscores escalating tensions between the two nations.
In his post, Trump stated, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” This statement directly references an ad that features audio clips of former President Ronald Reagan from a 1987 radio address, where he criticized high tariffs for harming American consumers and workers.
The ad, which Ontario released last week, claims that “high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars,” a sentiment echoed by Reagan. In response to the ad, the Ronald Reagan Foundation issued a statement condemning its use of “selective audio” and announcing that it did not authorize the use of Reagan’s voice. They are currently “reviewing its legal options” regarding the matter.
“The ad is FAKE and was designed to interfere with the decision of the U.S. Supreme Court,” Trump added, indicating the ongoing legal battles surrounding his tariff strategy.
This latest development adds to the already complicated relationship between the U.S. and Canada, which is currently the second-largest trading partner for the United States, following Mexico. In 2022, the U.S. imported $412.7 billion worth of goods from Canada while exporting $349.4 billion in American goods, according to U.S. statistics.
Earlier this year, Trump imposed higher tariffs on Canadian goods as part of his trade strategy, citing concerns over drug trafficking and immigration across the border—accusations Canadian officials have vehemently denied. The situation escalated in the summer when tariffs on certain Canadian imports reached 35%, although many goods are exempt under the 2020 U.S.-Mexico-Canada Agreement (USMCA).
In retaliation, Canada announced 25% tariffs on numerous U.S. products not covered by the USMCA. However, Mark Carney, Canada’s Prime Minister, lifted some of these retaliatory tariffs in August as a gesture towards reaching a new agreement with the U.S. Despite these efforts, a comprehensive deal remains elusive.
As the relationship between the two countries continues to deteriorate, Carney has expressed intentions to double exports to nations outside the U.S. due to the “pall of uncertainty” caused by ongoing American tariffs. Earlier this month, he visited the White House in hopes of negotiating a resolution.
This breaking news is developing rapidly, and the implications of Trump’s decision to terminate trade talks could have extensive repercussions on both economies. As tensions rise, all eyes are on how Canada will respond and what this means for future trade relations.
Stay tuned for updates as this story develops, with official comments expected from the White House, Global Affairs Canada, and Ontario’s Premier’s office shortly.
