U.S. President Donald Trump announced late Thursday that he is terminating all trade negotiations with Canada, accusing the country of running a “fraudulent” television advertisement that misused former U.S. President Ronald Reagan’s image and misrepresented facts about tariffs.
In a post on his social media platform, Trump said the ad, allegedly produced by the government of Ontario, was “fake” and aimed at influencing U.S. court decisions related to tariffs. “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 wrote. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
The move came shortly after Canadian Prime Minister Mark Carney said his government plans to double exports to countries beyond the United States amid rising uncertainty over Trump’s trade policies. The decision is expected to further heighten tensions between the two neighboring nations, which have faced months of escalating tariff disputes.
Earlier Thursday, the Ronald Reagan Presidential Foundation and Institute posted on X (formerly Twitter) that the Ontario government had “misrepresented” Reagan’s 1987 address on free and fair trade without permission. The foundation said it is considering legal action and urged the public to view the original video.
Carney’s office did not immediately comment, as the prime minister prepared to leave for an Asian summit. Ontario Premier Doug Ford, whose administration reportedly funded the $75,000 ad, also declined to respond. Ford had promoted the campaign on social media, saying it aimed to oppose U.S. tariffs on Canadian goods and promote cooperation.
Trump’s tariffs have particularly hurt Canada’s automotive sector, much of which is centered in Ontario. Earlier this month, automaker Stellantis announced plans to move a production line from Ontario to Illinois, citing tariff pressures.
More than three-quarters of Canada’s exports go to the U.S., amounting to nearly C$3.6 billion (US$2.7 billion) in daily trade. Trump’s decision to end talks could complicate upcoming reviews of the U.S.-Mexico-Canada Agreement (USMCA), the trilateral deal he helped broker during his first term but has since criticized.