In a surprise announcement on Friday, former U.S. President Donald Trump declared the &ldquo;termination of all trade negotiations with Canada,&rdquo; accusing Ottawa of releasing a &ldquo;fraudulent&rdquo; advertisement that misused footage of former U.S. President Ronald Reagan criticizing tariffs. The move has triggered a diplomatic row between Washington and Ottawa, further straining North American trade relations.
Trump made the declaration on his social media platform, writing that Canada&rsquo;s &ldquo;egregious behavior&rdquo; left him with no choice but to end talks. He claimed the video, produced by Ontario&rsquo;s provincial government, falsely portrayed Reagan as opposing tariffs, an issue Trump has long defended as central to his economic policy. 
<blockquote class="twitter-tweet">
( <a href="https://twitter.com/realDonaldTrump?ref_src=twsrc%5Etfw">@realDonaldTrump</a> - Truth Social Post ) ( Donald J. Trump - Oct 23, 2025, 10:39 PM ET ) The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about&hellip; <a href="https://t.co/3dY6NchmxR">pic.twitter.com/3dY6NchmxR</a>
&mdash; Donald J Trump Posts TruthSocial (@TruthTrumpPost) <a href="https://twitter.com/TruthTrumpPost/status/1981554428067889460?ref_src=twsrc%5Etfw">October 24, 2025</a></blockquote>

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The controversy began when Ontario aired a C$75 million (approximately US$54 million) ad campaign in the United States, using edited audio of Reagan&rsquo;s 1987 address. The ad, broadcast on major American networks including Fox, NBC, and Newsmax, appeared to show Reagan criticizing tariffs while praising free trade. Trump and his supporters allege the clip was manipulated to undermine U.S. trade and tariff policy and influence ongoing court proceedings related to trade disputes.
The Ronald Reagan Presidential Foundation and Institute also criticized the ad, saying it was &ldquo;misleading and unauthorized.&rdquo; The foundation stated that Reagan&rsquo;s words were taken out of context and that no permission had been given for the use of his likeness or voice in the commercial. Legal action against the Ontario government is reportedly being considered.
Trump, in his post, asserted that the advertisement was designed to &ldquo;interfere with decisions of the U.S. Supreme Court and other courts,&rdquo; referring to pending cases concerning tariffs imposed during his administration. He emphasized that tariffs were &ldquo;very important to the national security and economy of the U.S.A.&rdquo; and called Canada&rsquo;s actions a &ldquo;disgraceful breach of trust.&rdquo;
The Canadian government has not yet issued an official response, though sources in Ottawa have described the situation as &ldquo;deeply unfortunate.&rdquo; Ontario&rsquo;s Premier&rsquo;s office has also remained silent so far. Canadian media reports suggest that officials are reviewing the Reagan Foundation&rsquo;s claims and weighing possible diplomatic and legal implications.
The announcement comes amid sensitive economic discussions between the two countries. The U.S. and Canada are key trading partners under the United States-Mexico-Canada Agreement (USMCA), which succeeded NAFTA. Any halt in negotiations could impact tariffs on steel, aluminum, automobiles, and agricultural goods sectors critical to both economies.
Economists warn that Trump&rsquo;s declaration, if enforced, could disrupt trade worth hundreds of billions of dollars and further destabilize North American supply chains. &ldquo;Even symbolic tension between the U.S. and Canada has real market effects,&rdquo; said one trade analyst, noting that businesses rely on predictable cross-border regulations.
This latest confrontation underscores Trump&rsquo;s ongoing commitment to protectionist trade policies and his willingness to escalate disputes over perceived slights. The former president has repeatedly championed tariffs as tools to protect American industry and curb what he views as unfair trade practices by foreign governments.
As of now, no official U.S. government statement has confirmed whether Trump&rsquo;s declaration will translate into concrete trade policy changes. Both sides appear to be assessing the political and economic fallout. Analysts say the incident could mark the sharpest downturn in U.S.-Canada relations since the tariff wars of Trump&rsquo;s first presidential term.
While the Reagan Foundation explores legal recourse and Canadian authorities deliberate their response, the diplomatic chill between two of the world&rsquo;s closest allies appears to be deepening, this time not over trade figures or treaties, but over the legacy of an American president long associated with free markets and global cooperation.

Trump announces ‘termination’ of trade negotiations with Canada, citing unfair policies

Trump halts all trade talks with Canada

Trump announces ‘termination’ of trade negotiations with Canada, citing unfair policies

October 24, 2025 | 11:34 IST