Prime Minister Mark Carney of Canada stated on Friday that his government is prepared to resume trade negotiations with the United States once the Americans are ready, following President Donald Trump's abrupt termination of talks the previous day.
The halt stemmed from an advertisement by Ontario's provincial government criticizing tariffs, which featured audio from a 1987 radio address by former President Ronald Reagan.
Trump labeled the ad fraudulent in a late-night social media post, accusing it of interfering with an upcoming U.S. Supreme Court decision on the legality of his tariffs.
The advertisement, part of a $75 million Canadian dollar campaign aired on U.S. television, spliced excerpts from Reagan's speech to highlight the dangers of tariffs.
Reagan's voiceover warned that imposing tariffs on foreign imports might seem patriotic initially but ultimately harms American workers and consumers, leading to trade wars, shrinking markets, and job losses.
The Ronald Reagan Presidential Foundation condemned the ad for using selective audio and video without permission, stating it misrepresented the original address.
The foundation noted that Reagan's 1987 remarks explained tariffs on Japanese goods as a reluctant exception to his advocacy for free trade, and it is reviewing legal options.
White House adviser Kevin Hassett echoed Trump's frustration, describing Canada as difficult to negotiate with and citing a lack of flexibility in discussions.
Hassett told reporters that frustration had built over time, suggesting the pause might provide a needed break.
Trump further accused Canada of attempting to influence the Supreme Court's November hearing, which could challenge his tariff authority and require refunds of billions in collected duties.
Carney emphasized progress in prior talks focused on sectors like steel, aluminum, and automobiles, where Trump has imposed tariffs up to 50% on metals and 25% on vehicles.
These measures, the highest since the 1930s, have severely impacted Canada's economy, with three-quarters of its exports destined for the U.S. and Ontario bearing the brunt through job losses and manufacturing cutbacks.
Carney has removed most of Canada's retaliatory tariffs but recently reduced tariff-free quotas for General Motors and Stellantis due to their scaling back of Canadian operations.
As he departed for the ASEAN summit in Kuala Lumpur — where Trump is also expected — Carney highlighted efforts to diversify trade ties, particularly with Asia.
Ontario Premier Doug Ford, a vocal critic of U.S. tariffs, urged a tougher stance and shared Reagan's full speech on social media, affirming that Canada and the U.S. are stronger together.
This marks the second time Trump has paused talks with Canada, previously over a digital services tax that Ottawa later rescinded.
With a review of the 2020 U.S.-Mexico-Canada free-trade agreement set for next year, Carney acknowledged the fundamental shift in U.S. trade policy but stressed mutual benefits in resuming constructive dialogue.