Trump halts all trade talks with Canada over ad quoting Ronald Reagan on tariffs

US President Donald Trump has abruptly terminated all trade negotiations with Canada after a government-backed advertisement from Ontario used quotes from former US President Ronald Reagan criticising tariffs.

The minute-long television ad, aimed at a US audience, featured excerpts from Reagan’s 1987 radio address warning that trade barriers “hurt every American worker.” The Ontario government, led by Premier Doug Ford, funded the campaign as part of its opposition to Trump’s escalating tariffs on Canadian goods.

Trump, in a fiery post on his Truth Social platform, accused Canada of “fraudulently using” the footage without permission, describing the ad as “FAKE” and “an attempt to interfere with US court decisions.”

“Based on their egregious behavior, all trade negotiations with Canada are hereby terminated,” Trump declared.

US Secretary of State Marco Rubio later confirmed the suspension, while Trump doubled down online, claiming Canada had “cheated and got caught.”

The Reagan Presidential Foundation also condemned the advertisement, saying Ontario did not seek or receive approval to use the clips. It accused the province of using “selective audio and video” that misrepresented Reagan’s message and said it was “reviewing legal options.” Trump cited the foundation’s statement to justify his decision.

The latest move further strains US–Canada relations following Washington’s imposition of sweeping tariffs earlier this year. The Trump administration first levied a 25% tariff on Canadian imports such as timber, steel, aluminum, and vehicles, before increasing it to 35% in August.

Ontario, one of Canada’s most industrialized provinces, has borne the brunt of the tariffs, prompting Ford to launch an aggressive campaign urging their removal. “We’ll never stop making the case against American tariffs on Canada,” Ford wrote earlier this month. “The way to prosperity is by working together.”

The Canadian government, led by Prime Minister Mark Carney, expressed disappointment at Trump’s escalating trade measures but has vowed to continue diplomatic engagement. Carney said his administration would seek to strengthen internal trade and diversify export markets while pushing for a review of the US-Mexico-Canada Agreement (USMCA)

The fallout with Canada comes as Trump’s administration hardens its stance on several trade fronts. This week, Washington imposed new sanctions on Russia’s oil giants Rosneft and Lukoil and confirmed an upcoming meeting between US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng in Malaysia amid rising trade tensions with Beijing.

Trump is expected to meet China’s President Xi Jinping later this month in South Korea — his first face-to-face meeting with the Chinese leader since returning to the White House.

More than 75% of Canada’s exports go to the US, with trade between both nations valued at nearly C$3.6 billion (£1.9bn) daily. Analysts warn that Trump’s decision to cut off talks could trigger economic ripples across North America, deepening uncertainty ahead of a scheduled US Supreme Court hearing on the legality of his global tariffs on 5 November.