Ontario's Reagan ad prompts Trump to end talks and raise tariffs, putting cross-border trade at risk
A single advertisement has triggered a dramatic escalation in US-Canada trade tensions, with US President Donald Trump abruptly terminating trade talks and imposing an additional 10 percent tariff on Canadian goods, according to multiple media reports.
The controversy began when Ontario’s government aired an ad during the World Series, using audio from a 1987 speech by former US President Ronald Reagan that criticized tariffs.
Trump called the advertisement “fraudulent,” claiming it misrepresented Reagan’s views and was a “hostile act” against the United States, as reported by CNN.
In response, Trump announced on Truth Social that “ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED” and that tariffs would increase by 10 percent over current levels.
Ontario Premier Doug Ford stated that after discussions with Prime Minister Mark Carney, the ad campaign would pause on Monday to allow trade talks to resume, but not before the commercial aired during the first two World Series games.
Ford emphasized that the intention was to spark a conversation about the economic impact of tariffs on workers and businesses in both countries.
The Ronald Reagan Foundation criticized the ad for lacking context and not seeking permission to use the speech, noting that Reagan’s full remarks—available online—expressed strong support for free and fair trade, and warned about the dangers of tariffs.
Canada’s economic relationship with the US has been strained by sectoral tariffs on key exports such as autos, steel, aluminum, lumber, and energy, which have contributed to Canada’s highest unemployment rate in nine years, according to CNN.
While most Canadian exports are exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA), the recent escalation has raised uncertainty about the future of cross-border trade.
Prime Minister Carney has responded by focusing on diversifying Canada’s trade relationships, especially in Asia, and maintaining a pragmatic approach to US negotiations, as reported by The New York Times.
Carney stated that Canada “can’t control the trade policy of the US,” and highlighted ongoing efforts to secure results that benefit workers and families on both sides of the border.
Industry observers, including Fen Hampson of Carleton University, have noted that Canada’s strategy is to avoid escalation and rely on pressure from US industries affected by tariffs to influence American policy.
As the situation develops, the future of North American trade remains uncertain, with both countries’ economic interests—and the stability of cross-border investment—hanging in the balance.
