In a surprising turn of events, United States President Donald Trump has announced that all trade negotiations with Canada have been “terminated.” The announcement came after the government of Ontario, Canada’s largest province, released an advert criticising the heavy tariffs imposed by Washington. The one-minute video included the voice of former U.S. President Ronald Reagan warning about the long-term dangers of tariffs.
The advert was part of a campaign worth 75 million Canadian dollars. It featured Reagan’s 1987 speech, where he said that tariffs might look patriotic at first, but eventually harm every American worker and consumer. The video showed visuals of the New York Stock Exchange, construction cranes, and flags of both nations waving side by side, creating a powerful message against trade barriers.
The video angered the U.S. President, who immediately took to social media, calling the advert “FAKE” and “egregious.” He accused the Ontario government of spreading false information about U.S. trade policy and declared that trade talks with Canada were “HEREBY TERMINATED.” The strong statement created instant shock across both countries and rattled markets already on edge due to ongoing trade disputes.
Rising Tensions over Tariffs
The United States has imposed a 35% tax on many Canadian imports, including steel, cars, and other key industrial products. These tariffs have hit the Canadian economy hard, especially Ontario, which relies heavily on trade with its southern neighbour. Industries have faced job losses, reduced production, and growing frustration as costs continue to rise.
While the U.S. has allowed certain exemptions for goods covered under its free trade deal with Mexico and Canada, the restrictions still hurt Canada’s manufacturing sector. The Canadian government has been trying to negotiate a reduction or removal of these tariffs since earlier this year. However, the situation has become complicated due to disagreements between Canada’s federal leadership and the Ontario provincial government.
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Ontario’s Premier has been one of the loudest voices against the tariffs. He has accused the U.S. of unfair treatment and claimed that the policies have caused severe damage to Canadian businesses. He even warned earlier that Ontario could stop supplying power to parts of the U.S. if the trade restrictions continued. His comments, combined with the new advert, appear to have provoked a strong response from Washington.
The White House, on the other hand, has defended the tariffs as necessary to protect American jobs and industries. The President has said that tariffs make other countries treat the U.S. more fairly in trade. However, critics argue that such policies often lead to retaliation and economic harm on both sides of the border.
Reagan Foundation Joins the Dispute
The Ronald Reagan Foundation criticized Ontario’s advert, saying it used the late president’s voice and images without permission. It claimed the video took Reagan’s remarks out of context and said it was reviewing possible legal action. Trump referenced this statement to back his claim that the ad was misleading and politically motivated.
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The advert has become a major flashpoint in U.S.-Canada relations. Ontario, which depends heavily on exports to the U.S., has suffered from tariffs as high as 50% on metals and 25% on automobiles. The dispute has also led to tense exchanges, with Ontario’s Premier earlier warning that the province could cut power exports to the U.S. in retaliation.
The controversy now sits at the centre of a larger trade and legal battle. The Supreme Court’s decision in November could determine whether Washington’s global tariffs are valid. Until then, the President’s declaration means all trade talks between the two close allies have come to a standstill, casting uncertainty over cross-border business and manufacturing.