Trump Halts All Trade Talks With Canada Over Ontario’s Anti-Tariff Ad Featuring Ronald Reagan

October 24, 2025

Washington: President Donald Trump announced on Thursday that he is immediately halting all trade negotiations with Canada, citing what he called “egregious behavior” by the Canadian government after Ontario aired an anti-tariff advertisement using the voice of former US President Ronald Reagan.

Trump Announces Immediate Halt to Trade Talks

“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Trump wrote on his Truth Social platform. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

Ontario Ad Sparks Diplomatic Tension

The advertisement, funded by the government of Ontario, features excerpts from Reagan’s 1987 speech defending free trade and criticizing tariffs as outdated policies that harm American innovation and workers. Trump claimed the ad was a deliberate attempt to interfere with a pending US Supreme Court case that challenges the legality of much of his foreign economic policy.

Supreme Court Hearing Looms Over Tariff Policy

The court is scheduled to hear oral arguments in the case on November 5, a proceeding that could determine the future of Trump’s country-based tariffs. The president warned that overturning them would be “a disaster,” forcing the US government to refund billions of dollars in duties already paid by companies.

Reagan Foundation Criticizes Misuse of Speech

The Ronald Reagan Presidential Foundation and Institute criticized Ontario for running the ad without permission, accusing it of misrepresenting Reagan’s message by using “selective audio and video.” The Foundation noted that Reagan’s full remarks also defended limited tariffs on Japanese imports at the time.

Trump Accuses Canada of Interference

Trump’s criticism continued into Friday morning. “Canada is trying to illegally influence the United States Supreme Court in one of the most important rulings in the history of our Country,” he wrote in a new post. There is, however, no evidence that the ad violated any laws.

Impact on Canada’s Trade-Dependent Economy

Canada’s economy, heavily dependent on US trade, has been hit hard by Trump’s tariffs. About 75% of Canada’s exports go to the United States. Ontario, home to around 16 million people, has been particularly affected due to its steel and automobile industries, both sectors directly targeted by US tariffs.

The latest move has injected fresh uncertainty into one of the world’s largest bilateral trade relationships. The US and Canada traded over $900 billion in goods and services last year. Following Trump’s remarks, the Canadian dollar dipped slightly against the US dollar.

Neither the White House nor the offices of Canadian Prime Minister Mark Carney and Ontario Premier responded to requests for comment after normal business hours.

Ongoing Talks on Steel and Aluminum Tariffs

Officials from both countries had been engaged in months-long negotiations over steel and aluminum tariffs, with Canada arguing that reducing such duties would strengthen North America’s advanced manufacturing sector.

Trump and Prime Minister Carney are expected to attend ASEAN and APEC summits in Malaysia and South Korea, where they may have a chance to meet face-to-face amid escalating trade tensions.

Analysts downplayed the long-term market impact. “Markets have seen this movie before — Trump’s trade brinkmanship rarely lasts,” said Charu Chanana, strategist at Saxo Capital Markets in Singapore. “Any loonie weakness may be faded quickly unless we see follow-through on tariffs or new rhetoric escalation.”

A Pattern of Trade Confrontations

This is not the first time Trump has threatened to cut off trade ties with Canada. Earlier this year, he made a similar declaration over Canada’s Digital Services Tax, before reversing course after Ottawa agreed to suspend the tax and resume talks.

For now, Trump’s latest decision leaves the US–Canada trade relationship in limbo, raising questions about the stability of one of North America’s most critical economic partnerships.