UPDATE: President Donald Trump has just announced the termination of all trade negotiations with Canada, citing an anti-tariff advertisement by the province of Ontario. The decision comes following an ad campaign that controversially includes audio from former President Ronald Reagan, which Trump claims misrepresents Reagan’s views on tariffs.
In a post on Truth Social late Thursday, Trump declared, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” This drastic move is expected to escalate tensions between the two countries, which are already strained over trade issues.
The ad in question features excerpts from a 1987 radio address by Reagan, in which he argued that tariffs only serve to harm American workers and consumers. Reagan’s voice, included in the ad, emphasizes, “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars.” The Ronald Reagan Foundation has since criticized the ad for using “selective audio” and confirmed they are reviewing legal options against Ontario for unauthorized use of the former president’s remarks.
Trump’s sharp response also referenced the Foundation’s statement, labeling Ontario’s ad as “FAKE.” He accused the province of attempting to interfere with a pending U.S. Supreme Court case regarding his tariff strategy, making this issue a pivotal moment in U.S.-Canada relations.
Trade between the U.S. and Canada is significant, with the U.S. importing $412.7 billion in Canadian goods last year, while Canada purchased $349.4 billion worth of American products. These statistics highlight the deep economic ties between the nations, making the termination of talks particularly impactful for industries on both sides of the border.
Tensions have been rising since Trump imposed higher tariffs on Canada earlier this year, claiming the country was not doing enough to combat the flow of illicit drugs and migration. Canada has denied these allegations, and in response to Trump’s actions, implemented 25% retaliatory tariffs on many U.S. goods not covered by the U.S.-Mexico-Canada Trade Agreement (USMCA).
Despite these challenges, Canadian Prime Minister Mark Carney had been seeking to negotiate with the Trump administration, even lifting retaliatory tariffs as a goodwill gesture earlier this summer. However, with Trump’s latest announcement, the prospects of reaching a trade agreement have dimmed significantly.
As a result of these ongoing trade disputes, Carney has indicated that Canada will aim to double its exports to countries outside of the U.S., citing the “pall of uncertainty” caused by American tariffs. This strategic shift underscores the precarious nature of U.S.-Canada economic relations.
The situation is developing, and further commentary is awaited from officials in the White House, Global Affairs Canada, and the Ontario Premier’s office, as both nations grapple with the implications of Trump’s abrupt decision. The future of trade negotiations now hangs in the balance, with both countries facing potential economic repercussions.
For real-time updates, stay tuned to our coverage on this urgent issue.