TL;DR: President Donald Trump terminated all trade negotiations with Canada on October 23, 2025, calling a $75 million Canadian ad campaign featuring Ronald Reagan criticizing tariffs "fraudulent" and claiming it was meant to interfere with an upcoming U.S. Supreme Court hearing on tariff legality.
What Trump Said
- Trump posted on Truth Social: "Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED," accusing Canada of using a "FAKE" advertisement to "interfere with the decision of the U.S. Supreme Court."
- He stated "TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A." and called the ad fraudulent.
- Trump had previously told reporters on October 22 that "if I was Canada I'd take that same ad also" before reversing his position the next day.
The Advertisement Controversy
- Ontario's government paid approximately $75 million for TV ads across American stations using audio and video of former President Ronald Reagan speaking about tariffs from a 1987 address.
- The ad aired during a Toronto Blue Jays game broadcast on Fox on October 21, catching Trump's attention.
- The Ronald Reagan Presidential Foundation & Institute said on October 24 that Ontario "misrepresent[ed] the address" and did not seek or receive permission to "use and edit the remarks," adding they were reviewing legal options.
- Ontario Premier Doug Ford's office responded that the commercial uses "an unedited excerpt" from Reagan's public address available through public domain, stating: "President Ronald Reagan knew and spoke directly to Americans that tariffs hurt the U.S. economy, workers and families."
Canadian Response and Impact
- Prime Minister Mark Carney called the move "regrettable" on October 24 but said Canada would "continue to conduct these complex negotiations in the best interest of Canadians," announcing plans to diversify trade by seeking deals with the EU, Japan, and Asia.
- Canada-U.S. Trade Minister Dominic LeBlanc had said earlier in the week that the two countries were "making progress" in negotiations.
- The termination comes amid ongoing U.S. tariffs on Canadian steel, aluminum, and automobiles, with Canada retaliating through a digital services tax on U.S. tech companies.
Broader Context
- The U.S. Supreme Court is scheduled to hear oral arguments in November 2025 on whether Trump's use of the International Emergency Economic Powers Act to impose global tariffs is legal.
- Trade between the U.S. and Canada totals approximately $600 billion annually, with about 75% of Canadian exports going to the United States.
- Trump and Carney met at the White House in early October 2025, where Trump praised the prime minister, but no deal materialized despite reported progress in talks.