President Trump ends trade talks with Canada over TV ad from Ontario government misrepresenting Reagan’s position on tariffs

"The Ronald Reagan Foundation has just announced that Canada fraudulently used a fake advertisement featuring Ronald Reagan speaking negatively about tariffs,” Trump wrote on Truth Social. “The ad cost $75,000 and was meant to interfere with court decisions. Tariffs are very important to the national security and economy of the U.S.A. Based on their egregious behavior, all trade negotiations with Canada are hereby terminated.”

The ad, produced in the Canadian province of Ontario, features Reagan criticizing tariffs, saying they may appear patriotic but ultimately “hurt every American worker and consumer” and “lead to fierce trade wars and lost jobs.” The Reagan Foundation has denounced the ad, as it does not include the full context of what Reagan said, that although he was generally in favor of free trade, there are special cases where he had to use tariffs, such as with semiconductors while trading with Japan.

In response to the ad, the Ronald Reagan Presidential Foundation and Institute said in a statement that read, "The Ronald Reagan Presidential Foundation and Institute learned that the Government of Ontario, Canada, created an ad campaign using selective audio and video of President Ronald Reagan delivering his “Radio Address to the Nation on Free and Fair Trade,” dated April 25, 1987. The ad misrepresents the Presidential Radio Address, and the Government of Ontario did not seek nor receive permission to use and edit the remarks."

"The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter. We encourage you to watch President Reagan’s unedited video on our YouTube channel."

The move comes as a sharp reversal from the positive tone Trump struck just weeks ago with Canada. Earlier this month, the president had signaled that the US and Canada were edging closer to a new trade agreement during a friendly joint press appearance with Canadian Prime Minister Mark Carney at the White House. When asked by reporters about progress, Trump was upbeat but nonspecific. “We’re going to be talking about tariffs, about trade, about a lot of things, but that’s for a little later on,” he said, adding that Canadians would “love us again” once an agreement was finalized.

Trump also praised Carney as “a great man and a world-class leader,” and noted that both leaders were aligned on pursuing peace in the Middle East. “There’s a real chance for an agreement to be reached,” Trump said. “Our team is over there now. Literally every country in the world supports our plan.” When asked what was delaying a final deal with Canada, Trump quipped, “Because I want to be a great man too.”

Until Thursday’s announcement, the two governments had been in active discussions to ease US tariffs on Canadian aluminum, which currently stand at 50 percent. The talks were also seen as a prelude to the 2026 mandated review of the US-Mexico-Canada Agreement (USMCA), the successor to NAFTA.