In a dramatic escalation of already fraught trade relations, President Donald Trump abruptly terminated all trade talks with Canada on October 23, 2025, citing a controversial advertisement aired by Ontario’s provincial government. The ad, which featured edited audio from a 1987 radio address by former President Ronald Reagan criticizing tariffs, has set off a political firestorm on both sides of the border and reignited fierce debate over the future of North American trade.
The Ontario government, led by Premier Doug Ford, recently rolled out a $75 million CAD anti-tariff advertising campaign. The centerpiece: a one-minute ad using Reagan’s voice to warn against the long-term dangers of tariffs. In the ad, Reagan intones, “Sometimes, for a short while, it works... But only for a short time. Over the long run, such trade barriers hurt every American worker and consumer. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars.” Ford, in a post on X, declared, “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.”
But the ad’s use of Reagan’s words quickly drew the ire of the Ronald Reagan Presidential Foundation & Institute, which accused the Ontario government of misrepresenting the former president’s message and editing his remarks without permission. According to the Foundation, Reagan’s original April 25, 1987 address actually included an announcement of new tariffs on Japanese imports, complicating the ad’s narrative. The Foundation stated publicly that the ad “misrepresents” Reagan’s intent and noted that Ontario “did not seek nor receive permission to use and edit the remarks.” The nonprofit even suggested it was reviewing legal options, underscoring the seriousness with which it viewed the matter.
President Trump seized on the controversy, posting on Truth Social: “Tariffs are very important to the national security, and the economy, of the U.S.A. Based on their egregious behavior, all trade negotiations with Canada are hereby terminated.” In a separate post, Trump doubled down, writing, “CANADA CHEATED AND GOT CAUGHT!!! They fraudulently took a big buy ad saying that Ronald Reagan did not like Tariffs, when actually he LOVED TARIFFS FOR OUR COUNTRY, AND ITS NATIONAL SECURITY.” He further claimed, “THE STOCK MARKET IS STRONGER THAN EVER BEFORE BECAUSE OF TARIFFS!”
This isn’t the first time Trump has pulled the plug on talks with America’s northern neighbor. Back in June 2025, he announced a similar freeze in response to Canada’s plans for a digital services tax on American tech firms—a move Ottawa quickly reversed. More recently, the Trump administration imposed a new round of lumber tariffs, hitting Canada, the United States’ largest lumber supplier, particularly hard. The president’s repeated use of tariffs as a negotiating tool has drawn both praise and condemnation at home and abroad.
Canadian Prime Minister Mark Carney, facing mounting uncertainty, responded by unveiling an ambitious plan to double Canada’s non-U.S. exports over the next decade, with a particular focus on expanding trade with India and China. “The jobs of workers in our industries most affected by U.S. tariffs – autos, steel, lumber – are under threat,” Carney emphasized in a national address. “Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us.” Carney’s government is expected to lay out further details in the upcoming Budget 2025, set for release on November 4.
The economic stakes are high. Canada was the third-largest source of U.S. imports in 2024 and has long been one of America’s top two trading partners. The new tariffs, particularly on lumber and beef, are already hitting consumers in both countries. According to Senate Democratic Leader Chuck Schumer, Trump’s tariffs are forcing American families to pay an average of $1,300 more per year on goods ranging from lumber to beef. “Americans cannot afford Donald Trump’s price-spiking tariff temper tantrums. These constant tantrums end up costing Americans real money,” Schumer said in a statement. He vowed to bring the issue back to the Senate floor, promising votes next week on proposals to reverse Trump’s tariffs on Canada and other countries.
Schumer’s criticism was pointed: “Refusing to negotiate with Canada to alleviate the tariffs will ensure that Americans continue to pay an average of $1,300 due to higher prices on everything from lumber to beef. The madness must stop.” He also challenged Republicans, saying, “Americans will see if Republicans put Donald Trump or average families first.”
The Senate had previously passed a symbolic resolution in April 2025 to end Trump’s tariffs on Canada, with four Republican senators joining Democrats. However, the measure is unlikely to advance in the House, and even if it did, it would almost certainly face a presidential veto—a high bar to overcome given current political divisions.
Meanwhile, the debate over the Reagan ad has spilled into the public sphere. Critics of Trump, including former Alberta Premier Jason Kenney, have argued that Reagan’s original message was consistent with a principled opposition to tariffs. Kenney posted on X, “Everything that Reagan said in his pro free trade April, 1987 radio message is consistent with the ad. In fact, everything he ever said about trade, before and after becoming President, is consistent with his principled opposition to tariffs.” Progressive voices online have gone further, accusing the Reagan Foundation of “lying for Trump” and suggesting Reagan “must be rolling in his grave over how they are trying to cover-up his legacy and true beliefs.”
Ontario Premier Doug Ford, for his part, has tried to cool tensions, describing Canada and the United States as “friends, neighbours and allies.” Ford shared a link to Reagan’s original address from the presidential library, writing, “President Ronald Reagan knew that we are stronger together. God bless Canada and God bless the United States.”
While the ad’s accuracy continues to be debated, the broader reality is clear: the latest spat has dealt a significant blow to the already delicate relationship between the two countries. With trade talks now at a standstill and both governments digging in, businesses and workers on both sides of the border are left facing an uncertain future. The coming weeks—especially with Canada’s federal budget on the horizon and Senate votes looming in Washington—promise to be pivotal for the direction of North American trade.
As the rhetoric intensifies and the economic impact becomes more pronounced, leaders in both countries are under growing pressure to find a path forward that protects jobs, fosters prosperity, and maintains the ties that have long defined the U.S.-Canada partnership.
