U.S. President Donald Trump said on Thursday he has suspended all trade talks with Canada, accusing the country of “egregious behavior” over a controversial advertisement that featured former U.S. President Ronald Reagan criticizing tariffs.
“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump wrote on his social media platform Truth Social, referring to what he called a “fraudulent advertisement.”
The video, which aired earlier this week, showed Reagan—one of the most revered Republican figures—denouncing tariffs on foreign goods and warning they lead to job losses and trade wars.
Ontario Premier Doug Ford confirmed the ad had drawn Trump’s attention, saying, “I heard that the president heard our ad. I’m sure he wasn’t too happy.”
The decision marks a sharp escalation in tensions between Washington and Ottawa, just months before the U.S., Canada, and Mexico are scheduled to review their 2020 continental free-trade agreement.
Trade Tensions Rising Again
Trump, who has long championed tariffs as a tool to protect American industry, has imposed duties on Canadian steel, aluminum, and auto imports earlier this year, prompting retaliatory measures from Ottawa. The two sides have since held talks over a potential deal for the steel and aluminum sectors, which now appear to be on hold.
Trump’s trade policies have pushed U.S. tariffs to their highest levels since the 1930s, fueling global trade tensions and uncertainty among businesses.
Canadian Prime Minister Mark Carney said on Thursday that Ottawa “will not allow unfair U.S. access” to its markets if trade negotiations fail.
“We’ve defended our workers before, and we’ll do it again,” Carney told reporters.
The latest rupture underscores the fragility of cross-border trade relations as both nations prepare for next year’s North American trade pact review — a process that could shape the economic future of the continent.
