The relationship between Canada and the United States has hit a rough patch once more. Provoked by a Canadian commercial, President Trump has terminated all trade discussions. On Thursday, President Donald Trump announced that by referencing a video, he has ceased trade talks with Canada. The accusation was of a 'deceptive' advertisement that broadcast Ronald Reagan protesting tariffs.
In a Truth Social post, President Trump wrote, "Based on their cheap behavior, all trade talks with Canada have been terminated."
This decision has escalated trade tensions between these neighboring competitors. Only days before, Trump had met with Canadian Prime Minister Mark Carney at the White House to discuss repairing their trade relationship.
Canadian Ad Upsets Trump, Allegations of Fraud
In a post on Truth Social, Trump elaborated, "The Ronald Reagan Foundation has just informed that Canada has committed fraud in an advertisement. This fake ad depicts former President Ronald Reagan discussing negatively about tariffs. Valued at $7.5 million, the ad was meant to sway the Supreme Court's decisions."
Trump emphasized that tariffs are vital for national security and the economy, halting all negotiations due to Canada's conduct.
Funded by the Ontario provincial government, the ad was launched by Premier Doug Ford. On October 16, 2025, Ford shared the link on X, aiming to mobilize American public opinion against Trump's tariffs through U.S. media (TV and digital platforms).
'Tariffs Weaken the U.S. Economy'
The commercial utilized a real clip of Ronald Reagan's 1980s speech. In it, Reagan cautions against tariffs, warning, "Tariffs weaken the U.S. economy, eliminate jobs, and burden consumers." This segment originates from Reagan's 1988 speech where he criticized protectionism.
The ad claims Trump's 25-35% tariffs to be an 'economic suicide' detrimental to Canada-U.S. trade.
The Ronald Reagan Presidential Foundation and Institute issued a statement, criticizing the ad as "misleading" and opposed it.
From Eased to Tense Relations
Recently, tensions between Washington and Ottawa seemed to ease. Trump softened his aggressive rhetoric against Canada and his pressure campaign for trade concessions. Earlier this month, during Mark Carney's first official visit to the White House, Trump played host.
At the time, both sides showed optimism. Trump and Carney were seen laughing together, discussing rebuilding ties and reconsidering heavy tariffs. In an effort to curry favor, the Canadian Prime Minister heaped praises on Trump. Carney credited Trump for ending the India-Pakistan conflict in May.
Carney ultimately left Washington with the confidence that he and his delegation would 'happily return.' However, the tension between the two nations has reignited.
According to the Toronto Star, Carney acknowledged on Thursday that a comprehensive trade deal with the Trump administration is now "out of reach."
