Trump Halts Canada Trade Talks Over Reagan Ad/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump has abruptly ended all trade talks with Canada, citing a controversial TV ad that misused Ronald Reagan’s voice to oppose U.S. tariffs. He accused Canada of attempting to influence the U.S. Supreme Court. The move escalates already tense trade relations between the two countries.
Canada Trade Talks Disrupted – Quick Looks
- Trump halts trade talks: President Donald Trump ends negotiations with Canada due to a TV ad.
- Reagan ad controversy: Trump alleges the Ontario ad misrepresented Ronald Reagan’s anti-tariff stance.
- National security claims: Trump defends tariffs as essential to U.S. security and economy.
- Supreme Court case: A major case on the legality of Trump’s tariffs is upcoming.
- Canadian exports at risk: Over 75% of Canada’s exports go to the U.S., heightening the stakes.
- Carney’s response pending: Canadian Prime Minister Mark Carney has yet to officially respond.
- Auto sector hit: Tariffs heavily impact Ontario’s car manufacturing sector, with companies relocating.
- Ford’s role: Ontario Premier Doug Ford publicly promoted the ad that drew Trump’s ire.
Deep Look: Trump Shuts Down Canada Trade Talks Amid Ad Controversy
‘WASHINGTON — President Donald Trump declared on Thursday night that he is terminating all ongoing trade negotiations with Canada, citing a controversial television advertisement he claims was designed to mislead the American public and sway the judiciary. The announcement, posted on Trump’s Truth Social platform, was triggered by a $75,000 ad released by the Ontario government that featured edited audio from former President Ronald Reagan.
Trump expressed outrage at what he called a “fraudulent” misuse of Reagan’s 1987 speech, claiming the ad misrepresents Reagan’s stance on tariffs to suggest he opposed Trump’s trade policies.
“They only did this to interfere with the decision of the U.S. Supreme Court,” Trump wrote, adding that the ad was a blatant attempt to influence an upcoming legal ruling concerning the legality of his tariffs.
“Based on their egregious behavior,” Trump stated, “ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
This sudden halt could severely impact U.S.-Canada trade relations, which have already been under strain for months. The tensions have escalated as both countries prepare for a review of the U.S.-Mexico-Canada Agreement (USMCA), a landmark trade deal Trump originally brokered but has since criticized.
Canada’s Economic Exposure
Canadian Prime Minister Mark Carney had earlier announced a new strategy aimed at diversifying Canadian exports beyond the U.S. in response to growing uncertainty. With nearly 76% of Canada’s exports going to the United States and approximately $2.7 billion USD in daily cross-border trade, Trump’s decision introduces new volatility into a heavily intertwined economic relationship.
Trump doubled down on Friday morning, posting in all caps: “CANADA CHEATED AND GOT CAUGHT!!!” and reiterated his belief that tariffs have made the United States “wealthy, powerful, and nationally secure.”
Reagan Foundation Reacts
Adding to the controversy, the Ronald Reagan Presidential Foundation and Institute weighed in on X (formerly Twitter), clarifying that the ad misused Reagan’s April 25, 1987 speech and was broadcast without permission. The foundation announced it is considering legal action, inviting the public to view the original speech to understand the context.
Tariffs Head to the Supreme Court
At the heart of the issue is a pivotal Supreme Court case slated for early November. The justices will determine whether Trump had the authority to unilaterally impose widespread tariffs under emergency powers law. Lower courts have already ruled against Trump’s interpretation, though his legal team insists the president holds broad power over tariff regulation as a matter of national security.
This legal showdown could have lasting implications for U.S. trade authority and the executive branch’s power in setting economic policy.
Ontario’s Provocative Campaign
Doug Ford, the Premier of Ontario, previously shared the now-infamous ad on social media, boasting that the province had launched an aggressive campaign against American tariffs.
“We’ll never stop making the case against American tariffs on Canada,” Ford posted.
The ad, and Ford’s previous moves such as levying electricity surcharges against U.S. states, have drawn Trump’s attention before. His past response included doubling tariffs on steel and aluminum.
Consequences for Canada’s Auto Sector
Canada’s auto manufacturing hub—largely concentrated in Ontario—has taken a significant hit from the tariffs. Earlier this month, Stellantis announced it would relocate one of its production lines from Ontario to Illinois, signaling a broader trend of deindustrialization driven by trade friction.
In retaliation, Canada had implemented its own tariffs in April, targeting a range of U.S. goods but sparing certain auto manufacturers through remission quotas.
Despite attempts by Carney to ease the friction during a recent meeting with Trump, the relationship now appears to be deteriorating rapidly.
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