WASHINGTON/OTTAWA: U.S. President Donald Trump announced late Thursday that he is terminating all trade negotiations with Canada, citing a controversial advertisement aired by the Ontario government. The ad features archival audio of President Ronald Reagan criticizing protectionist trade policies, which Trump labeled “fraudulent” and “interference” in U.S. judicial matters.
“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump posted on Truth Social, adding that tariffs are “very important to the national security and economy of the U.S.A.” Yahoo Oneindia
The ad, produced under Premier Doug Ford, aired in U.S. markets and warned that Trump’s tariff policies could harm American jobs. The Ronald Reagan Foundation has reportedly considered legal action over the use of Reagan’s voice, which Trump described as “fake.”
Canadian Response
Canadian Prime Minister Mark Carney, who met with Trump earlier this month to discuss steel and aluminum tariffs, condemned the cancellation and warned of reciprocal measures.
“Canada will not allow unfair U.S. access to our markets if trade talks fail,” Carney said in a statement Friday morning. “We remain committed to fair trade, but we will not be coerced.” Yahoo POLITICO
Carney’s government has signaled that it may impose counter-tariffs and review digital and agricultural trade frameworks if negotiations remain suspended.
Diplomatic Fallout
The breakdown in talks marks the second time Trump has walked away from trade negotiations with Ottawa in recent years. In 2023, he suspended discussions over Canada’s proposed digital tax targeting U.S. tech firms, prompting a swift reversal from Canadian lawmakers.
This latest rupture comes amid broader tensions over “reciprocal tariffs”, a Trump administration policy aimed at equalizing trade terms with key partners.
Economic Implications
Canada and the U.S. share one of the world’s largest bilateral trade relationships, valued at over $800 billion annually. Analysts warn that prolonged disruption could impact sectors ranging from automotive and agriculture to technology and energy.
Summary: President Trump has canceled trade talks with Canada over an Ontario ad featuring Ronald Reagan’s voice opposing tariffs. Prime Minister Mark Carney responded by warning that Canada will block unfair U.S. market access if negotiations remain suspended. The diplomatic standoff threatens to disrupt one of the world’s largest trade partnerships.
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