Trade relations between the United States and Canada have taken a dramatic turn after President Donald Trump abruptly ended all trade negotiations with America’s northern neighbor. The move, announced on October 24, 2025, comes in response to a controversial television advertisement running in Ontario, Canada, which Trump claims misrepresented the late President Ronald Reagan’s views on tariffs and free trade. The fallout has not only reignited longstanding tensions over tariffs but also raised questions about the use of political messaging, artificial intelligence, and the fragility of cross-border economic ties.
At the heart of the dispute is a TV ad sponsored by Ontario’s provincial government. The advertisement, which aired widely in Ontario and was set to reach U.S. audiences during the World Series, uses spliced excerpts from an April 1987 speech by President Reagan. The ad criticizes the Trump administration’s tariffs by implying Reagan was opposed to such economic measures. President Trump, however, described the ad as “crooked” and “dishonest,” and went so far as to suggest that segments may have been generated by artificial intelligence. “Canada lied,” Trump told reporters as he prepared for an Asia trip, according to Independent. “They made up a fake statement by President Reagan. Reagan was a big supporter of tariffs when needed. We need tariffs for national security, and they totally turned it around because they’re getting hurt by tariffs, and we’re gaining by tariffs.”
The controversy quickly escalated. Trump accused Canadian officials of deliberately interfering with a pending U.S. Supreme Court case that challenges his tariffs. He charged that the anti-tariff ad was designed to sway the Court’s decision, stating on Truth Social, “They only did this to interfere with the decision of the U.S. Supreme Court, and other courts.” He added, “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.”
The Ronald Reagan Presidential Foundation swiftly condemned the advertisement, calling it unauthorized and a misrepresentation of Reagan’s views. The foundation said it is “reviewing legal options” over the use of the audio, and told Axios that the ad misrepresented Reagan’s 1987 address on free trade. The foundation’s response underscored the seriousness with which both American and Canadian officials are treating the dispute, with the specter of legal action looming over the campaign.
Canadian officials, for their part, denied any wrongdoing. A spokesperson for Ontario Premier Doug Ford told CBC News that the government “hadn’t done anything wrong” and that the excerpt from Reagan’s speech was unedited. Ford, however, appeared to seek a way out of the escalating conflict. On October 25, Ford announced he would pull the ad in hopes of allowing trade negotiations to resume, following discussions with Prime Minister Mark Carney. Nevertheless, Ford said the ad would continue running through the weekend, including during the highly anticipated World Series games between the Toronto Blue Jays and the Los Angeles Dodgers—an event sure to draw massive cross-border viewership.
Ford defended the campaign’s purpose, saying, “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.” He added, “We’ve achieved our goal, having reached U.S. audiences at the highest levels.” The Ontario Premier’s statement highlights the dual nature of the ad: both a political message aimed at shaping public opinion and a calculated move to influence high-stakes trade negotiations.
The timing of the dispute is particularly sensitive. Just one day before Trump’s announcement, Canadian Prime Minister Mark Carney rolled out a new strategy to double Canada’s exports to countries outside the United States within a decade. Carney, a former banker with a reputation for pragmatism, acknowledged that “many of our former strengths — based on close ties to America — have become our vulnerabilities.” His remarks, reported by Axios, reflect a growing concern among Canadian leaders that the country’s economic reliance on the U.S. has become a liability in the face of unpredictable American trade policy.
This is not the first time trade tensions have flared between the two countries. Earlier in 2025, after trade talks failed to yield an agreement, the Trump administration raised import taxes on Canadian goods to 35 percent. Canada, in turn, has been seeking ways to diversify its export markets and reduce its dependence on the U.S. Yet, just weeks ago, relations appeared to be on the mend: Carney visited the White House in early October, a meeting that some observers interpreted as a sign that the North American allies were moving past their differences.
Economists and trade experts warn that the latest rupture could have far-reaching consequences. As Axios points out, the Trump administration’s approach to trade—marked by sudden shifts and high-stakes brinkmanship—creates an environment of uncertainty that can chill investment and disrupt supply chains. The risk, they say, is not just a single trade war but a pattern of “never-ending” disputes that undermine the stability of the global economy.
Trump, for his part, remains unapologetic about his tariff policies. Speaking to reporters, he insisted, “Reagan liked tariffs and when necessary, he would use tariffs. It’s made us a very rich country. It’s also made us, when it was used against us, not good for us. But we’ve used them very successfully.” He also did not shy away from escalating the rhetoric, calling the Canadian ad “fraud” and “dirty playing,” and warning, “I can play dirtier than they can.”
The dispute over the Reagan ad has also drawn attention to the use of artificial intelligence in political messaging. Trump’s suggestion that parts of Reagan’s speech may have been AI-generated, while unproven, taps into growing anxieties about the authenticity of media in the digital age. The Reagan Foundation’s decision to pursue legal action over the unauthorized use of Reagan’s likeness and words may set an important precedent as campaigns increasingly turn to digital tools to sway public opinion.
For now, the fate of U.S.-Canada trade relations hangs in the balance. With the ad set to run through the weekend and both sides digging in, it remains to be seen whether behind-the-scenes diplomacy can repair the rift. What is clear is that the episode has exposed the fragility of even the closest economic partnerships—and the outsized role that political messaging, legal maneuvering, and personal animosity can play in shaping the fate of nations.
As the dust settles, policymakers on both sides of the border are left to weigh the costs of confrontation against the benefits of cooperation—knowing that, in today’s volatile world, a single TV ad can bring years of negotiation to a screeching halt.