Trump Halts Canada Trade Talks Over Ontario Ad
So here’s the latest from the Canada-U.S. trade front—it’s been a whirlwind. Late Thursday, U.S. President Donald Trump abruptly called off ongoing trade negotiations with Canada, and the catalyst was none other than an Ontario government ad campaign. The ad, spearheaded by Premier Doug Ford, used former President Ronald Reagan’s words to push back against American tariffs, essentially making the case that tariffs hurt both economies. Despite Reagan’s speech being in the public domain and accurately quoted, Trump blasted the ad on his Truth Social platform, calling it “fraudulent” and claiming it interfered with U.S. Supreme Court deliberations on tariff legality. He even went as far as declaring that all trade talks with Canada were terminated.
Prime Minister Mark Carney responded calmly, emphasizing that Canada can’t control U.S. trade policy. Speaking to reporters before departing for Asia, Carney noted that U.S. policy has fundamentally changed over the decades, and Canada must adjust. He stressed that detailed, constructive negotiations had been ongoing, particularly on steel, aluminum, and energy sectors, and significant progress had been made—until Trump’s late-night outburst. Carney reiterated that Canada is ready to resume talks “when the Americans are ready,” while also working to build trade resilience at home and forge new partnerships, particularly in Asia.
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Doug Ford, meanwhile, doubled down on the ad. He retweeted Reagan’s speech, highlighting the longstanding friendship and alliance between Canada and the U.S., and suggesting that the president’s reaction actually amplified the ad’s impact. Ford’s office confirmed the ad was accurate and strategically aimed to make a point during the U.S. midterm elections.
The business community reacted swiftly. Lana Payne of Unifor criticized Trump’s move, saying it was intended to weaken Canada’s industrial base and pressure the country into economic subservience. Flavio Volpe of the Automotive Parts Manufacturers Association called it an “irrational ploy” that harms Canadian workers. Brian Kingston, representing Canadian vehicle manufacturers, warned that tariffs, combined with legal threats and costly mandates, are eroding Canada’s competitiveness in auto manufacturing. The Ontario Chamber of Commerce chimed in too, calling Trump’s reaction “stressful” but underscoring the importance of moving past theatrics for the North American economy.
The Reagan ad itself highlighted the dangers of high tariffs, warning that they trigger retaliation, higher trade barriers, market shrinkage, and job losses. It closed with Reagan’s reflection on Canada-U.S. free trade, a relationship that ultimately led to the historic Free Trade Agreement in the late 1980s. Trade experts note that Trump’s post could simply be a negotiation tactic, but the uncertainty it creates is undeniable, leaving Canadian businesses on edge.
In short, what started as a promotional ad in Ontario has exploded into a major diplomatic moment, putting trade talks on hold and shining a spotlight on the delicate balance between politics, public messaging, and international commerce. Carney is heading to Asia this week to secure other partnerships, but all eyes remain on when, or if, discussions with the U.S. will resume.
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