FazTimes Media, Washington, D.C.—October 24, 2025 — United States President Donald Trump announced on Thursday that all trade negotiations with Canada have been terminated, citing a “fraudulent television advertisement” featuring late U.S. President Ronald Reagan. The advertisement, which was reportedly produced by the Ontario provincial government, allegedly misused Reagan’s 1987 remarks on free and fair trade to criticize tariffs—sparking a diplomatic rift between Washington and Ottawa.

In a post on his Truth Social platform, Trump accused Canada of “interfering with judicial decisions” and “falsely invoking” Reagan’s image to influence U.S. policy.

“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about tariffs,” Trump wrote. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

The president’s decision comes amid escalating tensions over trade tariffs on Canadian steel, aluminum, and automobiles, which Trump reinstated earlier this year, citing “national economic security.”

The Advertisement Controversy

The dispute centers around a television spot released by Ontario’s government, which appeared to show Reagan condemning tariffs and warning about job losses and trade wars. The ad, reportedly costing $75,000, was part of a campaign promoting open trade and opposing American tariffs on Canadian goods.

However, the Ronald Reagan Presidential Foundation & Institute issued a strong statement condemning the use of Reagan’s speech, saying that Ontario did not have authorization to edit or repurpose the late president’s 1987 “Radio Address to the Nation on Free and Fair Trade.”

“This advertisement misrepresents President Reagan’s remarks,” the foundation stated. “We were not contacted for permission, and we are reviewing legal options in this matter.”

The foundation also invited the public to watch the unedited version of Reagan’s speech to “see the truth for themselves.”

Canada’s Reaction

Ontario Premier Doug Ford acknowledged earlier this week that the ad had “caught President Trump’s attention.”

In a post on social media, Ford defended the campaign, saying:

“Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”

Meanwhile, Canadian Prime Minister Mark Carney has emphasized that Canada would not allow “unfair Carney said that his administration aims to double exports to non-U.S. markets if trade negotiations fail, emphasizing the need for U.S. access to those markets. U.S. countries are responding to Washington’s increasingly protectionist stance. “We cannot rely on a partner that chooses to weaponize trade,” Carney stated.

Economic and Political Fallout

Trump’s move to halt talks has injected fresh uncertainty into North American trade relations. This occurred months after both sides began discussions to revise tariff structures and supply chain agreements. More than 75 percent of Canada’s exports go to the United States, and nearly C$3.6 billion ($2 billion) in goods and services cross the border every day. 7 billion. Goods and services cross the border every day. Economists warn that the suspension of talks could hurt both economies, especially industries like automotive manufacturing, energy, and agriculture.

Trade analyst Jennifer McAllister from the Brookings Trade Institute noted:

“This marks a serious setback for U.S.-Canada relations. Reagan was a symbol of economic cooperation—using his image in this controversy only deepens mistrust.”

The move also comes amid a turbulent global trading environment, with Trump seeking to renegotiate deals with the European Union, China, and Mexico, while continuing to impose tariffs to boost domestic production.

What Happens Next

As of Friday morning, Canadian officials have not issued an official response to Trump’s decision. The White House, meanwhile, has directed the U.S. Trade Representative’s Office (USTR) to suspend all meetings with Canadian delegates “until further notice.”

Insiders in the Trump administration in Washington speculate that Canada's response to the Reagan advertisement dispute could potentially reverse the decision.

“If Ontario retracts the ad and issues an apology, there could be room for reconsideration,” one senior official told Media on condition of anonymity.

However, others believe the rupture reflects a deeper political strategy by Trump to strengthen his “America First” narrative ahead of the 2026 midterm elections, portraying himself as tough on “foreign manipulation.”

Public and International Response

The controversy has ignited debate across North America. Critics in both countries argue that the reaction is disproportionate and risks undermining decades of cooperation between two of the world’s closest allies.

Social media users in Canada have shared the original Reagan speech, claiming the Ontario ad used only a small excerpt that was “taken out of context.” Meanwhile, American commentators aligned with Trump have praised his decision as a “necessary show of strength.”

Internationally, leaders from the European Union and the Asia-Pacific have expressed concern that the U.S.-Canada standoff could have ripple effects on global trade stability.

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