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World News
25 October 2025

Trump Ends Canada Trade Talks Over Reagan Ad Spat

A controversial Ontario advertisement featuring Ronald Reagan’s voice sparks a dramatic halt to U.S.-Canada trade negotiations, raising concerns about tariffs and the cost of everyday goods.

It was a week when politics, baseball, and history collided at the border between the United States and Canada. As the Toronto Blue Jays prepared to face off against the Los Angeles Dodgers in their first World Series appearance in over thirty years, a diplomatic spat erupted between the two neighboring countries—threatening not just trade negotiations, but the price of everything from cars to refrigerators.

On October 24, 2025, President Donald Trump abruptly announced the termination of all trade talks with Canada. The reason? A 60-second television advertisement aired by Ontario’s provincial government during the World Series opener, featuring the voice of former U.S. President Ronald Reagan. According to ABC News, Trump claimed the ad, which spliced together lines from Reagan’s 1987 radio address warning about the dangers of high tariffs and trade wars, misrepresented the former president’s views and was intended to sway the outcome of a U.S. Supreme Court case on tariffs scheduled for the following month.

“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump posted on his social media platform, as reported by ABC News and USA Today. The ad, according to an Al Jazeera analysis, did use Reagan’s actual words—“high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars”—but presented them out of order and omitted certain lines, including Reagan’s reference to a commitment to fair trade.

Ontario Premier Doug Ford, who first announced the campaign on October 16, 2025, said on X, “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.” Yet, less than 24 hours after Trump’s announcement, Ford tried to dial down the tension, saying he would pause the advertisement effective Monday, October 27, to allow trade talks to resume. However, he instructed his team to keep airing the ad during the weekend’s World Series games between the Blue Jays and Dodgers, according to Al Jazeera.

The controversy over the ad drew in the Ronald Reagan Presidential Foundation, which stated Ontario had used “selective audio and video” without permission and was reviewing its legal options, as reported by USA Today and Al Jazeera. The White House, meanwhile, expressed “extreme displeasure,” with Deputy Chief of Staff Stephen Miller telling reporters that Trump would respond further after the ad’s removal.

Canadian Prime Minister Mark Carney, who had tried to make a friendly World Series wager with Trump only to be ignored, expressed disappointment but remained diplomatic. “The United States has tariffs against every one of their trading partners to different degrees,” Carney told reporters, as cited by USA Today. “And it’s in that context that our officials, my colleagues, have been working with their American colleagues on detailed, constructive negotiations.” Carney emphasized that progress had been made before Trump terminated the talks and said, “We stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions.”

The timing of the spat could hardly have been worse. The U.S. Supreme Court is set to hear oral arguments on November 5, 2025, in a case that will decide the fate of Trump’s tariffs, which he imposed unilaterally under the 1977 International Emergency Economic Powers Act. Lower courts have already ruled that Trump overstepped his authority, a point of significant legal and economic consequence (USA Today).

The tariffs in question are no small matter. As ABC News reports, Canadian goods currently face steep 35% tariffs, though many exports are exempt under the United States-Mexico-Canada Agreement (USMCA). Sector-specific tariffs include 50% levies on steel and aluminum—materials that are crucial to the manufacture of cars, auto parts, home appliances, and food packaging. Canada is the top exporter of steel and aluminum to the U.S., and steel alone accounts for about 60% of a car’s weight, according to the American Iron and Steel Institute. When tariffs raise the price of steel, U.S. manufacturers face higher input costs, which typically trickle down to consumers in the form of higher prices for cars and appliances.

“Trade talks could’ve resulted in the lowering of existing tariffs,” Michael Sposi, a professor of economics at Southern Methodist University, told ABC News. The breakdown of negotiations, he and other experts warn, could keep those tariffs in place for the foreseeable future, affecting prices for a wide range of goods on both sides of the border.

The economic stakes are enormous. In 2024, the U.S. ran a $63 billion trade deficit with Canada—a number smaller than its deficits with China ($295 billion) and Mexico ($171 billion), but significant nonetheless (ABC News). About three-quarters of Canadian exports head to the U.S., comprising roughly 11% of U.S. imports, with major exports including crude oil, natural gas, and motor vehicles. Many of these goods remain tariff-free under the USMCA, but the agreement is up for a joint review in 2026, and the current diplomatic chill could cast a long shadow over those talks.

This isn’t the first time Trump has abruptly ended trade negotiations with Canada. In June 2025, he suspended talks over Canada’s proposed Digital Service Tax on U.S. tech companies—a move he called “a direct and blatant attack” on the United States. Talks resumed only after Canada abandoned the tax. And in July, Trump threatened trade discussions again after Canada announced support for Palestinian statehood, lamenting that it would make it “very hard for us to make a Trade Deal with them.”

For now, the diplomatic row has spilled over into the cultural sphere, with the World Series serving as both a literal and metaphorical playing field. While Trump may be calling the shots on tariffs, the Blue Jays had the upper hand in Game 1, blowing past the Dodgers 11-4, as reported by USA Today. Even as officials on both sides sparred over trade, fans on both sides of the border tuned in to watch the game, perhaps hoping that the spirit of friendly competition might eventually extend to the negotiating table.

As the dust settles, one thing is clear: the relationship between Canada and the United States, long marked by cooperation and mutual benefit, has entered a period of uncertainty. Whether the two countries can move past this latest spat and return to productive talks remains to be seen. For now, the fate of tariffs—and the prices of countless everyday goods—hangs in the balance.