In a dramatic escalation of trade tensions, President Donald Trump abruptly ended all trade negotiations with Canada on October 24, 2025, and announced a new 10% tariff on Canadian imports. The move came in response to a controversial television advertisement aired in the United States, paid for by the government of Ontario, which used the words of former President Ronald Reagan to criticize U.S. tariffs. The ad, which ran during the highly watched World Series opener between the Toronto Blue Jays and Los Angeles Dodgers, has set off a firestorm across both sides of the border, drawing in politicians, business leaders, and the Reagan Presidential Foundation.
According to the Associated Press, the ad featured audio and video of Reagan’s 1987 Presidential Radio Address, in which he denounced tariffs as economically damaging and likely to spark trade wars. The Ontario government, led by Premier Doug Ford, reportedly spent approximately $54 million (about $75 million Canadian) to ensure the ad reached American audiences in nearly every major media market. Ford initially defended the campaign, 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. We’ve achieved our goal, having reached U.S. audiences at the highest levels.”
The ad’s timing could not have been more pointed. It aired during the seventh inning of Game 1 of the World Series on October 24, 2025, a stage guaranteed to capture the attention of millions. Within hours, President Trump took to his Truth Social platform to denounce the ad as “fraudulent” and a “hostile act.” He wrote, “Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs. The Reagan Foundation said that they, ‘created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address,’ and 'did not seek nor receive permission to use and edit the remarks.'”
Trump’s anger was not confined to social media. On October 25, 2025, he announced an immediate 10% increase on tariffs for Canadian imports, citing the ad as the catalyst. “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. Thank you for your attention to this matter!” he declared. The president further accused Canada of hoping that the U.S. Supreme Court would intervene in their favor regarding tariffs, referencing an upcoming hearing that could determine the legality of Trump’s sweeping tariff policies.
The White House, for its part, indicated that the administration’s frustration with Canada had been building for some time. Spokesman Kush Desai described the ad as “the latest example of how Canadian officials would rather play games than engage with the Administration.” Kevin Hassett, director of the National Economic Council, pointed to “a lack of flexibility” from Canada and referenced “leftover behaviors from the Trudeau folks,” a nod to former Prime Minister Justin Trudeau’s strained relationship with Trump.
Canadian Prime Minister Mark Carney responded with measured resolve, stating on October 24 that Canada remained ready to resume trade negotiations with the United States. “We can’t control the trade policy of the United States. We recognize that that policy has fundamentally changed from the 1980s,” Carney said before departing for the Association of Southeast Asian Nations summit in Malaysia, which President Trump was also attending. However, Trump made it clear he had no intention of meeting Carney at the summit, telling reporters, “I don’t think there’s much they can do. I’m inclined to leave the trade deal with Canada the way it is.”
Ontario Premier Doug Ford, a populist conservative, initially stood firm, highlighting the alliance between Canada and the U.S. and sharing a link to Reagan’s anti-tariff speech. Yet, after discussions with Carney, Ford agreed to pause the ad campaign effective October 27, though he noted the ads would continue to run through the weekend. “We’ve achieved our goal, having reached U.S. audiences at the highest levels,” Ford reiterated, emphasizing that the campaign was always about sparking debate on economic policy.
The backlash from the Reagan Presidential Foundation was swift and unequivocal. In a statement posted on X, the Foundation declared, “The ad misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987,” and confirmed that Ontario had not received permission to use or edit Reagan’s remarks. The Foundation, which oversees the Reagan Presidential Library and Museum, said it was reviewing legal options in response. Trump, echoing this sentiment, wrote, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.”
The controversy has reignited debates about the role of tariffs in U.S. economic policy. Trump has long argued that tariffs are essential for protecting national security and correcting trade imbalances, stating earlier this month, “We’re the king of being screwed by tariffs,” during a meeting with Prime Minister Carney. He has repeatedly insisted that the U.S. will no longer allow itself to be exploited by other nations’ trade practices.
For Canada, the stakes are high. More than three-quarters of its exports go to the United States, with nearly $2.7 billion U.S. worth of goods and services crossing the border daily. Trump’s tariffs have hit Canada’s auto sector particularly hard, prompting companies like Stellantis to move production lines out of Ontario. In retaliation, Canada has imposed its own levies on select U.S. goods, though it has carved out exemptions for certain automakers.
Meanwhile, the ad campaign’s reach was extensive. According to media tracking data cited by Associated Press, Ontario purchased more than $275,000 in ad reservations, airing the spot in 198 of America’s 210 media markets, with especially heavy rotation in New York, Washington, D.C., Harrisburg, and West Palm Beach. The campaign was designed to maximize visibility and, by Ford’s account, succeeded in doing so.
As the dust settles, both sides appear to be digging in. Trump’s decision to end trade talks and hike tariffs signals a hardening U.S. stance, while Canada, despite pausing its ad campaign, maintains its readiness to negotiate. The Reagan Foundation’s legal review adds yet another layer of uncertainty to an already volatile situation. One thing is certain: the fallout from this latest trade spat is far from over, and the economic and political implications will likely reverberate for months to come.