The already tense trade relationship between Canada and the United States reached a fever pitch this weekend, as President Donald Trump announced an additional 10% tariff on Canadian goods in response to an anti-tariff television ad campaign launched by Ontario’s provincial government. The ad, which prominently featured clips from former President Ronald Reagan’s 1987 radio address criticizing tariffs, has not only stirred political controversy but also threatened to derail crucial trade negotiations between the two North American allies.
Ontario Premier Doug Ford, who spearheaded the CA$75 million (about US$54 million) advertising blitz, confirmed on October 24, 2025, that he would pause the campaign effective Monday, October 27, after discussions with Canadian Prime Minister Mark Carney. The decision to halt the ads came as a direct response to President Trump’s abrupt termination of trade talks, which he attributed to what he called a “fraudulent” and “fake” use of Reagan’s words. Yet, Ford insisted the commercials would continue to air through the weekend, including during the highly watched World Series games between the Toronto Blue Jays and Los Angeles Dodgers.
“We’ve achieved our goal, having reached US audiences at the highest levels,” Ford said in a statement quoted by TVNZ. “Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses.” Ford further noted, “I’ve directed my team to keep putting our message in front of Americans over the weekend so that we can air our commercial during the first two World Series games.”
The ad campaign, which cost Ontario taxpayers tens of millions, used audio and video from Reagan’s 1987 speech, in which he warned that tariffs hurt “every American worker and consumer” and were “triggering fierce trade wars.” According to CNN, the Ontario government’s goal was to highlight the negative impact of Trump’s tariffs on both sides of the border, particularly in the aluminum, steel, auto, and lumber industries. However, the Ronald Reagan Presidential Foundation & Institute swiftly condemned the ad, claiming it misrepresented Reagan’s intent and was used without permission.
President Trump, never one to hold back, took to Truth Social to vent his frustration. “Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs,” he posted. “Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now.” Trump also accused Canada of attempting to influence an upcoming US Supreme Court ruling on his global tariff regime, further inflaming tensions.
The White House, through spokesman Kush Desai, echoed Trump’s sentiments, stating, “Ontario’s taxpayer-funded ad campaign on American TV networks — that misleadingly edited President Reagan’s 1987 radio address about trade — is the latest example of how Canadian officials would rather play games than engage with the Administration. As President Trump made clear on Truth Social, further talks are a futile effort if Canada can’t be serious.”
Despite the uproar, Canadian officials, including Prime Minister Mark Carney, have expressed a willingness to continue negotiations to reduce tariffs in certain sectors. “We can’t control the trade policy of the United States. We recognise that the policy has fundamentally changed from the 1980s,” Carney told TVNZ before departing for Asia. “We have to focus on what we can control and realise what we can’t control.” Carney’s administration has also indicated a desire to double exports to countries outside the US, citing the threat posed by Trump’s trade policies.
The fallout from the escalating tariff war is already being felt on both sides of the border. According to CNN, the United States imported $411.9 billion worth of goods from Canada last year, making Canada its second-largest trading partner. However, Trump’s tariffs on Canadian autos, steel, aluminum, and lumber have hit the Canadian economy hard. Canada’s unemployment rate has climbed to its highest level in nine years, and retaliatory tariffs have led to a sharp decline in American spirits exports to Canada—down 85% in the second quarter of 2025. Canadian travel to the US by land has also dropped by 31% through September 2025, according to Statistics Canada.
Ontario’s auto sector, a vital pillar of the province’s economy, has been particularly battered by the ongoing trade dispute. Trade analysts, as reported by Republic World, warn that the continued escalation could have major consequences for both economies. The USMCA (United States-Mexico-Canada Agreement), negotiated during Trump’s first term, has allowed compliant goods to enter the US duty-free, but Trump’s repeated threats have many bracing for significant changes when the agreement is reviewed next year.
The Ontario ad campaign has also sparked a fierce political debate within Canada. Manitoba Premier Wab Kinew and British Columbia Premier David Eby have voiced support for Ford’s efforts, with Kinew stating, “It’s clear that these ads are working. If you throw a rock at a lake and you don’t hear a splash, you probably missed. So to my good friend Doug Ford, keep the ads on TV. They’re effective, and this country is behind you.”
Not everyone agrees. Daniel Béland, a political science professor at McGill University, told TVNZ that the ad has “backfired big time,” while former Conservative cabinet minister Jason Kenney defended the ad’s accuracy, arguing, “The Ontario ad does not misrepresent President Reagan’s anti-tariff radio address in any respect whatsoever. It is a direct replay of his radio address, formatted for a one-minute ad.” Kenney also criticized the Reagan Foundation for its response, suggesting it had been unduly influenced by the Trump administration.
Business leaders are urging calm and a return to diplomacy. Candace Laing, president and CEO of the Canadian Chamber of Commerce, told CNN, “Tariffs at any level remain a tax on America first, then North American competitiveness as a whole. We hope this threat of escalation can be resolved through diplomatic channels and further negotiation. CUSMA means a North America where businesses do better. A successful free trade zone is fundamental for both our economies.”
As the dust settles from a weekend of high drama, both nations face a critical juncture. The Ontario ad campaign may have succeeded in grabbing American attention, but at a steep cost: the risk of a prolonged trade war, mounting economic pain, and an uncertain future for cross-border cooperation. All eyes now turn to Washington and Ottawa, where leaders must decide whether to double down on confrontation or seek a path back to the negotiating table.
