President Donald Trump announced the termination of all trade negotiations with Canada, citing a controversial television advertisement featuring the late President Ronald Reagan as the primary reason.
The decision, shared late Thursday on his Truth Social platform, accuses Canada of fraudulent use of Reagan's image to criticize U.S. tariffs.
Trump described the ad as "FAKE" and claimed it was designed to interfere with pending U.S. court decisions on tariff policies.
This abrupt move heightens ongoing tensions between the two nations, which have been negotiating a potential trade deal amid mutual tariffs imposed earlier this year.
The advertisement in question, produced by the government of Ontario, edits Reagan's 1987 radio address on free and fair trade to highlight his warnings against tariffs causing job losses and trade wars.
It cost $75,000 and aired in the U.S. to oppose American tariffs on Canadian goods.
The Ronald Reagan Presidential Foundation & Institute swiftly denounced the ad on social media Thursday evening.
It stated that the Ontario government "misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987."
The foundation emphasized that no permission was granted "to use and edit the remarks" of the late president.
It is "reviewing legal options in this matter" and encouraged the public to view the unedited original address.
Ontario Premier Doug Ford acknowledged earlier this week that the ad had caught Trump's attention.
“I heard that the president heard our ad. I’m sure he wasn’t too happy,” Ford said on Tuesday.
In a social media post, Ford linked to the ad with the message: “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”
Trump's announcement follows Canadian Prime Minister Mark Carney's recent statements on diversifying exports amid U.S. tariff threats.
Carney expressed aims to double Canada's exports to non-U.S. countries and warned against unfair American market access if talks fail.
The two leaders met earlier this month to ease frictions, as preparations continue for a review of the U.S.-Mexico-Canada Agreement.
Trump imposed tariffs on Canadian steel, aluminum, and autos this year, prompting retaliatory levies from Ottawa, though exemptions were granted for certain automakers.
These measures have particularly impacted Ontario's auto sector, leading Stellantis to relocate a production line from the province to Illinois this month.
More than three-quarters of Canadian exports head to the U.S., with nearly 3.6 billion Canadian dollars in goods and services crossing the border daily.
Carney's office did not immediately respond to requests for comment on the termination.
Trump continued his criticism Friday morning on Truth Social, posting that “CANADA CHEATED AND GOT CAUGHT!!!” and praising tariffs for bolstering U.S. wealth and security.
The dispute coincides with a U.S. Supreme Court case in early November challenging the legality of Trump's broad tariffs under emergency powers.
Lower courts have ruled against unilateral imposition, but the administration maintains presidential authority over importation policies.