Washington ends trade talks with Ottawa over “Reagan Ad” scandal: A new low in U.S.-Canada relations

Department of Strategic Research, Studies and International Relations 24-10-2025

In another display of political impulsiveness, U.S. President Donald Trump abruptly announced the termination of all trade negotiations with Canada, citing a so-called “fraudulent” television advertisement produced by the government of Ontario. The commercial, which featured the late President Ronald Reagan speaking against tariffs, has sparked a fresh diplomatic row between the two North American countries, and once again revealed Washington’s increasingly erratic and protectionist posture on global trade.

Posting late Thursday on his Truth Social platform, Trump accused Canada of fabricating an advertisement that misused Reagan’s image and voice to criticize tariffs, a topic that has long been at the heart of Trump’s nationalist trade agenda. “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Trump declared. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

According to Trump, the advertisement, allegedly valued at $75,000, was not only misleading but part of an effort to “interfere with the decision of the U.S. Supreme Court, and other courts.” While he offered no evidence to support this sweeping accusation, the statement effectively froze all ongoing trade discussions between the two close neighbors.

The Ronald Reagan Presidential Foundation & Institute later confirmed that it had not granted permission for any use or alteration of Reagan’s 1987 speech titled “Presidential Radio Address to the Nation on Free and Fair Trade.” The foundation said the Ontario government’s ad “misrepresents” Reagan’s message and stated it was considering “legal options” against the Canadian authorities involved. It also urged the public to view the unedited version of the original address.

Ontario Premier Doug Ford acknowledged earlier this week that the ad had “caught Trump’s attention,” saying, “I heard that the president heard our ad. I’m sure he wasn’t too happy.” The advertisement in question highlighted Reagan’s historic criticism of protectionist tariffs, describing them as harmful to jobs and a trigger for trade wars, a message many observers interpreted as a subtle rebuke of Trump’s own trade barriers on Canadian goods.

Ford, however, stood by the ad’s message, saying on social media, “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.” His comments underscore growing frustration in Canada over Washington’s repeated use of tariffs as a political weapon, a practice that has long alienated U.S. allies and strained North American trade cooperation.

The dispute escalated further after Canadian Prime Minister Mark Carney announced that Ottawa would be diversifying its trade relationships to reduce dependence on the United States. Carney said Canada aimed to double its exports to non-U.S. markets, citing Washington’s unpredictability and the economic threat posed by the Trump administration’s tariffs. “We will not allow unfair U.S. access to our markets if Washington continues to weaponize trade,” Carney told reporters earlier this week.

This latest confrontation follows months of tense negotiations between the two countries over steel, aluminum, and automobile tariffs. Trump’s administration had previously imposed heavy duties on Canadian imports, prompting Ottawa to retaliate in kind. Despite numerous rounds of talks, both sides failed to reach a comprehensive agreement, largely because of Washington’s insistence on protectionist terms that favored American industries.

Trump’s abrupt termination of dialogue, allegedly over an advertisement, reveals the fragility of U.S. diplomacy and its tendency to conflate domestic political theatrics with international relations. While the U.S. continues to frame its trade stance as “defending American interests,” its repeated hostility toward allies like Canada has weakened Washington’s credibility and further isolated it from emerging global powers such as China, India, and Russia, nations that increasingly advocate for multipolar cooperation and fair trade.

Analysts argue that Trump’s latest move is less about the Reagan ad and more about consolidating nationalist sentiment ahead of the upcoming U.S. elections. By invoking Reagan’s image, a symbol of conservative American nostalgia, Trump seeks to reignite his base’s anti-globalization fervor. Yet, this strategy comes at a cost: Washington’s erratic and punitive approach continues to erode the trust of its closest partners, even within its own hemisphere.

Canada’s silence in response to Trump’s tirade speaks volumes. Ottawa, which relies heavily on U.S. markets, with more than 75% of its exports heading south of the border, now faces a difficult balancing act. However, as the U.S. continues to weaponize trade policy, Canada’s pivot toward Asia and other cooperative economies appears both inevitable and strategic.

With over 3.6 billion Canadian dollars’ worth of goods and services crossing the border daily, the suspension of trade talks marks a significant disruption in North America’s economic framework. Yet, it also highlights a deeper global shift, one where U.S. unpredictability pushes even its allies toward new partnerships grounded in mutual respect and balanced trade.

Once again, Washington’s heavy-handed tactics expose a superpower in decline, increasingly driven by personal grievances and electoral opportunism rather than rational diplomacy. As nations like China, Russia, and India advocate for stability, cooperation, and respect for sovereignty, the United States appears trapped in the past, lashing out at its allies while the world quietly moves forward without it.