Washington, D.C. — U.S. President Donald Trump has abruptly terminated all trade negotiations with Canada, citing outrage over a “fraudulent advertisement” that used the image and voice of late President Ronald Reagan to criticize tariffs — a move that has ignited new tensions between Washington and Ottawa amid an already heated trade standoff.
Trump made the announcement late Thursday on his Truth Social platform, accusing the Canadian government of using AI-altered footage of Reagan to manipulate U.S. public opinion and interfere with ongoing legal and trade proceedings.
“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 claimed the ad — reportedly costing $75,000 — was designed to “interfere with the decision of the U.S. Supreme Court and other courts,” without elaborating on which legal matters were being referenced.
The Reagan Foundation Pushes Back
Earlier Thursday, the Ronald Reagan Presidential Foundation & Institute confirmed that a television advertisement aired by the Ontario provincial government “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade,’ dated April 25, 1987.”
The foundation said the Canadian government did not seek permission to use or edit Reagan’s remarks and described the broadcast as a “clear distortion” of the late president’s legacy.
“We are reviewing legal options in this matter,” the foundation said, inviting viewers to watch the unedited version of Reagan’s speech to understand the full context of his words on trade and tariffs.
Ontario Defends the Ad
Ontario Premier Doug Ford acknowledged earlier this week that the ad had drawn attention in Washington — and from Trump himself.
“I heard that the president heard our ad. I’m sure he wasn’t too happy,” Ford said Tuesday.
In a social media post, Ford doubled down on the message behind the advertisement, arguing that Canada must continue to push back against Trump’s “America First” tariff policies.
“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,” he said.
The controversial spot featured archival footage of Reagan criticizing trade barriers, edited to imply that he opposed the kind of tariffs Trump has imposed.
A Trade Relationship Under Strain
Trump’s decision to cancel trade talks came just hours after Canadian Prime Minister Mark Carney told reporters that his government was working to diversify trade and double exports to non-U.S. markets amid uncertainty over U.S. tariffs on steel, aluminum, and automobiles.
“We will not allow unfair U.S. access to our markets if trade negotiations fail,” Carney said.
Canada and the U.S. had been engaged in weeks of discussions aimed at revising their bilateral trade framework following Trump’s recent imposition of 100% tariffs on Canadian metals and auto parts.
Despite the escalating rhetoric, the Canadian prime minister’s office declined to comment on Trump’s latest announcement.
Economic Impact and Cross-Border Ties
The decision to end trade talks could have major economic consequences. More than 75% of Canadian exports are destined for the United States, and trade between the two countries amounts to nearly 3.6 billion Canadian dollars ($2.7 billion USD) every day.
Economists warn that the collapse of negotiations could trigger disruptions in automotive supply chains, agricultural exports, and energy partnerships, affecting both sides of the border.
Political analysts note that Trump’s move may also play to his domestic political base, emphasizing his hardline stance on “unfair trade practices” and appealing to voters ahead of the 2026 midterm elections.
The Reagan Advertisement Controversy
The advertisement at the heart of the dispute aired in multiple Canadian provinces and online, showing Ronald Reagan — through edited archival footage — speaking critically about trade restrictions and their impact on workers.
The Reagan Foundation confirmed that while the original 1987 speech did address the dangers of protectionism, it was taken out of context to appear as a rebuke of Trump’s tariff policy.
Legal experts say the case raises complex questions about intellectual property, posthumous rights of public figures, and the cross-border use of digital likenesses, especially in an age of AI-generated political content.
🔑 Key Takeaways
- President Trump ends all trade talks with Canada following a disputed Reagan advertisement.
- The Reagan Foundation accuses Ontario of using “fake” footage of Reagan without permission.
- Doug Ford defends the ad as a necessary message against U.S. tariffs.
- Prime Minister Mark Carney vows to expand Canadian trade beyond the U.S. market.
- Economic analysts warn of major disruptions to North American trade flows.
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