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The Reagan Riff

How a Canadian Anti-Tariff Ad Halted US-Canada Trade Talks

Saturday, 25 October 2025 09:38

Abstract

A diplomatic crisis erupted between the United States and Canada after the government of Ontario aired a television advertisement in US markets that used a 1987 speech by former President Ronald Reagan to criticise tariffs. US President Donald Trump abruptly terminated all trade negotiations with Canada, calling the ad 'fraudulent' and an attempt to interfere with an upcoming Supreme Court case on his tariff authority. The move has escalated trade tensions, putting billions in cross-border commerce at risk.

Historical Context

Recent Findings

The Unexpected Spark of a Trade War

The latest rupture in US-Canada trade relations was triggered by a one-minute television advertisement sponsored by the provincial government of Ontario. The ad, which began airing in US markets earlier in the month, was part of a C$75 million (approximately US$54 million) campaign aimed at American audiences. Its central feature was a voiceover from former US President Ronald Reagan’s 1987 'Radio Address to the Nation on Free and Fair Trade'. The advertisement quoted Reagan warning that high tariffs could lead to economic disaster. Specifically, the ad included Reagan’s remarks that 'trade barriers hurt every American worker and consumer' and that 'high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars'. The campaign was a direct response to the steep US tariffs imposed on Canadian goods, which have severely impacted Ontario’s manufacturing and automotive sectors. The ad ran on major US networks, including Fox, NBC, CBS, Newsmax, and Bloomberg, and was scheduled to continue until January 2026.

A Presidential Fury and a Charge of Fraud

US President Donald Trump responded to the advertisement with a late-night post on his Truth Social platform, announcing the immediate termination of all trade negotiations with Canada. The President called the ad 'FAKE' and 'fraudulent,' claiming it misrepresented Reagan’s views on tariffs. He asserted that tariffs were 'VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.' and declared that 'ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED' based on Canada’s 'egregious behavior'. The Ronald Reagan Presidential Foundation and Institute supported the President’s claim, issuing a statement that the Ontario government had used 'selective audio' and 'misrepresents' the 1987 radio address without seeking or receiving permission. The Foundation indicated it was reviewing its legal options regarding the unauthorised use of the former president’s remarks. Critics of the ad noted that while Reagan’s speech was largely pro-free trade, the full address also included a defence of his decision to impose duties on Japanese products at the time, a context the ad omitted. President Trump further alleged that the ad was an attempt to 'interfere' with the US Supreme Court’s upcoming decision on the legality of his global tariffs, with oral arguments scheduled for November 5.

The Core of the Trade Dispute

The diplomatic fallout occurred against a backdrop of escalating trade tensions that have been building for months. The terminated negotiations were focused on securing a deal to lower the steep US import tariffs on Canadian steel, aluminum, and autos. In February 2025, the US imposed a 25% tariff on steel and aluminum imports from all countries, including Canada, under Section 232 of the Trade Expansion Act of 1962, citing national security concerns. This rate was subsequently increased to 50% in June 2025. Canada had retaliated by imposing its own 25% surtax on US steel, aluminum, and certain auto imports. The ongoing trade discussions were also part of the broader context of a potential review of the United States-Mexico-Canada Agreement (USMCA), a major trade deal that governs the majority of North American commerce. The tariffs have had a tangible economic impact on Canada, particularly in the manufacturing heartland of Ontario, leading to job losses and financial strain for businesses dependent on cross-border trade.

Canadian De-escalation and Future Uncertainty

Following the President’s announcement, Canadian officials moved quickly to de-escalate the situation. Ontario Premier Doug Ford, whose government sponsored the ad, initially defended the campaign, stating that the goal of reaching US audiences at the highest levels had been achieved. However, after consulting with Canadian Prime Minister Mark Carney, Ford announced that the advertising campaign would be paused starting the following Monday to allow trade talks to resume. Ford did direct his team to continue airing the commercial during the first two games of the World Series over the weekend. Prime Minister Carney, who was travelling to Asia to diversify Canada’s trade relations, adopted a measured tone, stating that his government was ready to resume 'constructive negotiations' when the US was prepared to do so. Carney had previously indicated a plan to double Canada’s exports to countries outside the US in response to the threat posed by the US tariffs. The abrupt suspension of talks leaves the future of the US-Canada trade relationship in a state of high uncertainty, with billions of dollars in daily cross-border commerce now at greater risk.

Conclusion

The termination of US-Canada trade negotiations over a provincial television advertisement marks a significant low point in the diplomatic relationship between the two long-standing allies. The incident highlights the volatility of trade policy when intertwined with domestic political messaging and the personal sensitivities of the US President. While the Ontario government’s decision to pause the ad campaign offers a potential off-ramp, the underlying issues of the US tariffs on steel, aluminum, and autos remain unresolved. The immediate future of the trade relationship hinges on the willingness of both sides to return to the negotiating table and the outcome of the US Supreme Court’s review of the President’s tariff authority. The episode underscores the profound economic vulnerability of Canada, where more than three-quarters of exports are destined for the US market.

References

  1. Trump ends Canada trade talks over 'FAKE' Ronald Reagan tariff ad: 'Egregious'

    Supports the fact that Trump terminated talks, called the ad 'FAKE' and 'fraudulent,' and cited the Reagan Foundation's criticism of the ad's use of 'selective audio.'

  2. US tariffs on steel and aluminum imports from Canada

    Provides details on the US tariffs (25% under Section 232, increased to 50% in June 2025) and the context of the Reagan speech's omission of his own tariff actions.

  3. Trump calls off trade talks with Canada over Ontario's anti-tariff ad

    Confirms Trump's termination of talks via Truth Social, his attack on the ad as fraudulent, and his quote about tariffs being important to national security.

  4. Trump: U.S.-Canada Trade Negotiations 'TERMINATED' Over Reagan Ad

    Details the ad's cost (C$75 million), its run time (through January), the specific Reagan speech (April 25, 1987), and Trump's claim that the ad was meant to interfere with the Supreme Court case on November 5.

  5. Trump says all Canada trade talks 'terminated' over ad criticising tariffs

    Confirms the termination of talks, the Reagan quote used ('trade barriers hurt every American worker'), the Reagan Foundation's criticism, the existing 25% tariff raised to 50%, and Ontario's particular impact.

  6. Trump says trade talks with Canada terminated over Ford government anti-tariff ads

    Provides the specific Reagan quote used in the ad about high tariffs leading to 'fierce trade wars' and the ad's cost ($75 million).

  7. A timeline of the ad that led to Trump terminating trade talks with Canada

    Confirms the ad's use of Reagan's words to spread an anti-tariff message, the ad's focus on Reagan's broader views, and Trump's claim of interference with the Supreme Court.

  8. Ontario says it's pulling anti-tariff ads after Trump threatens to cut off trade talks with Canada

    Details Premier Doug Ford's decision to pause the ad campaign starting Monday to resume talks, his intention to air it during the World Series, and the White House's statement on the ad 'misleadingly edited' Reagan's address.

  9. Fact-check: Did Canadian ad about U.S. tariffs mislead about Reagan's remarks?

    Provides the specific quotes used in the ad and the analysis that the ad omitted Reagan's defence of tariffs on Japan in the same speech, supporting the 'selective audio' claim.

  10. Carney is ready to resume US Canada trade talks that were halted by Trump due to Reagan's ad

    Confirms Prime Minister Mark Carney's readiness to resume talks, the focus of the talks (steel, aluminum, autos), and the White House's frustration with Canada's lack of flexibility.

  11. US and Canada spar over ad of Reagan denouncing tariffs that led to derailed trade talks

    Confirms Ontario's particular impact from the tariffs, Ford's initial defence of the ad, and the ad's cost.

  12. Trump ends trade negotiations with Canada in a social media post after TV ads with Ronald Reagan

    Provides context on the USMCA review, the volume of cross-border trade ($3.6 billion daily), and Carney's plan to double non-US exports.

  13. Canadians pull Reagan advertisement after furious Trump halts trade talks

    Confirms the ad's use of Reagan's quote about high tariffs leading to 'fierce trade wars' and Ford's decision to pause the ad after speaking with Carney.