In a surprising move, US President Donald Trump announced the termination of all trade negotiations with Canada, citing a controversial advertisement that featured former President Ronald Reagan criticizing tariffs. Trump described the ad as “fraudulent” and accused Canada of egregious behavior in a post on Truth Social.
The ad, aired in Ontario, highlighted Reagan’s stance against tariffs on foreign goods, emphasizing that they could lead to job losses and trade wars. Ontario Premier Doug Ford confirmed that the ad had caught Trump’s attention, suggesting it may have played a key role in the abrupt breakdown of talks.
Trade relations between the US and Canada have been tense in recent months. Earlier this year, Trump imposed tariffs on Canadian steel, aluminum, and autos, prompting retaliatory measures from Ottawa. Both nations had been engaged in ongoing discussions to reach a potential deal, particularly focused on the steel and aluminum sectors.
Trump’s broader trade policies have seen US tariffs reach levels not seen since the 1930s, affecting countries worldwide. This aggressive approach has raised concerns among businesses and economists about the future of international trade and supply chains.
With the US, Canada, and Mexico slated to review their 2020 continental free-trade agreement next year, the breakdown in talks adds another layer of uncertainty for North American trade.
Canadian officials have reiterated that Canada will continue to protect its market access, even amid the collapse of negotiations, signaling that the trade standoff may have longer-term implications for both economies.
