Washington, D.C. – In a dramatic escalation of tensions with a key North American ally, U.S. President Donald J. Trump announced on Thursday the immediate termination of all trade negotiations with Canada, citing what he described as the “fraudulent” use of a video advertisement featuring the voice of the late President Ronald Reagan. The advertisement, produced by the government of Ontario, allegedly manipulated audio from a 1987 Reagan speech to criticize U.S. tariffs, prompting outrage from both the White House and the Ronald Reagan Presidential Foundation and Institute.
In a series of posts on his Truth Social platform, Trump accused Canadian authorities of creating a “FAKE” advertisement that misrepresented Reagan’s views on trade policy. “The Ronald Reagan Foundation reported that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Trump wrote. He further claimed that the $75,000 ad campaign was intended to “interfere with decisions of the US Supreme Court and other courts,” though no specific legal proceedings were identified in connection with the video.
“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Trump continued. “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” The announcement sent shockwaves through diplomatic and economic circles, given the deep integration of the U.S. and Canadian economies under the United States-Mexico-Canada Agreement (USMCA), which Trump himself renegotiated and signed into law during his first term.
The controversy centers on a digital advertisement launched by the Ontario government as part of a broader campaign to highlight the economic risks posed by potential U.S. tariffs on Canadian goods. According to the Ronald Reagan Presidential Foundation and Institute, the ad used selectively edited audio and video clips from Reagan’s “Radio Address to the Nation on Free and Fair Trade,” delivered on April 25, 1987. In the original address, Reagan discussed the importance of reciprocal trade practices and warned against protectionist measures that could harm global commerce. However, the Ontario ad reportedly repurposed portions of the speech to frame Reagan as an opponent of tariffs—a characterization the foundation vehemently disputes.
In a statement released Thursday morning, the Reagan Foundation confirmed that it had been made aware of the Ontario campaign earlier this week. “The government of Ontario created an ad campaign using selective audio and video from President Reagan’s radio address without seeking or receiving permission to use and edit the remarks,” the foundation said. It emphasized that the edited version “misrepresents the presidential address” and distorts Reagan’s nuanced position on trade policy.
Reagan, a Republican icon who served as president from 1981 to 1989, was a staunch advocate for free enterprise and reducing trade barriers, but he also imposed tariffs and quotas on certain imports—most notably on Japanese motorcycles and semiconductors—when he believed they were necessary to protect American industries. The 1987 address cited in the ad focused on the need for fair trade enforcement, including the use of targeted tariffs to counter unfair foreign subsidies and dumping practices.
The Reagan Foundation urged the public to view the unedited version of the speech, which is available on its official YouTube channel. “We encourage everyone to watch President Reagan’s full remarks to understand his complete message on free and fair trade,” the statement read. The foundation also revealed that it is “reviewing its legal options” in response to the unauthorized use of Reagan’s likeness and words, though it stopped short of announcing any specific action.
Ontario Premier Doug Ford’s office defended the advertisement, insisting that it was intended to underscore the shared economic interests of Canada and the United States. “This campaign highlights the devastating impact that tariffs would have on workers and families on both sides of the border,” a spokesperson said in a written statement. “President Reagan’s words were used to illustrate the long-standing commitment to open trade between our nations.” The spokesperson did not address the foundation’s claim that permission had not been granted for the use of the footage.
The $75,000 ad buy, first reported by Canadian media outlets, targeted digital platforms and was part of a larger multimillion-dollar advocacy effort by the Ontario government to lobby against renewed U.S. tariff threats. The campaign gained traction in recent weeks amid speculation that the Trump administration might impose new levies on Canadian steel, aluminum, lumber, and dairy products—sectors that have been flashpoints in U.S.-Canada trade relations for decades.
Trump’s decision to halt trade talks marks a significant departure from the cooperative tone that has characterized much of the USMCA’s implementation since it replaced the North American Free Trade Agreement (NAFTA) in 2020. The USMCA includes mechanisms for regular consultations and dispute resolution, and bilateral working groups have been actively negotiating updates to rules of origin and digital trade provisions. Canadian Prime Minister Justin Trudeau’s government had expressed optimism about concluding several outstanding agreements before the end of the year.
White House Press Secretary Karine Jean-Pierre declined to elaborate on the president’s Truth Social posts during Thursday’s briefing but confirmed that the administration views the Ontario ad as “a deliberate misrepresentation of President Reagan’s legacy.” She added that the termination of talks applies to all ongoing negotiations, including those related to critical minerals, border security, and energy exports.
Canadian officials reacted with alarm to the announcement. Foreign Affairs Minister Mélanie Joly described the move as “regrettable and counterproductive,” emphasizing that Canada remains committed to the USMCA framework. “We value our partnership with the United States and will continue to engage in good faith,” Joly said in a statement. Behind the scenes, sources in Ottawa indicated that emergency consultations were underway to assess the economic fallout and explore diplomatic off-ramps.
Economists warn that a full rupture in trade talks could have far-reaching consequences. The U.S. and Canada conduct more than $700 billion in bilateral trade annually, with integrated supply chains in automotive, energy, and agriculture sectors. A breakdown in negotiations could delay investments, disrupt cross-border manufacturing, and exacerbate inflationary pressures already straining households in both countries.
The Reagan Foundation’s involvement adds a unique dimension to the dispute. As the official steward of Reagan’s legacy, the nonprofit organization based in Simi Valley, California, tightly controls the use of the former president’s image and recordings. It has previously taken legal action against unauthorized commercial uses, including a 2020 cease-and-desist letter to a cryptocurrency project that featured Reagan in promotional materials.
Legal experts suggest that the foundation could pursue claims under federal right-of-publicity laws or copyright infringement, though the political nature of the ad may complicate enforcement. “Government speech enjoys certain protections, but editing a historical figure’s words to convey a message they did not intend crosses ethical and potentially legal lines,” said Professor Sarah Klein of Georgetown University Law Center.
As of Thursday evening, the Ontario government had not indicated whether it would pull the advertisement from circulation. Digital copies continued to appear on social media platforms, where they sparked heated debate among users on both sides of the border. Supporters of the ad argued that it accurately reflected Reagan’s broader free-trade philosophy, while critics accused Ontario of exploiting a revered American figure for partisan purposes.
Trump’s reference to Supreme Court interference remains unsubstantiated. No evidence has emerged linking the Ontario ad to any specific judicial proceedings. The Supreme Court is currently considering cases involving interstate commerce and environmental regulations that could indirectly affect cross-border trade, but administration officials have not clarified how the advertisement factors into those matters.
The president’s abrupt decision underscores his administration’s willingness to wield trade policy as a tool of political leverage. Since returning to office, Trump has reimposed tariffs on Chinese goods, threatened duties on Mexican imports over migration issues, and floated the idea of a universal baseline tariff on all foreign products. Canada had largely been spared from these measures until now, owing to the USMCA’s tariff-free provisions for most goods.
Market reaction was swift. The Canadian dollar fell nearly one percent against the U.S. dollar in afternoon trading, while shares in Canadian exporters with heavy U.S. exposure—such as auto parts manufacturers and forestry companies—declined sharply. U.S. steel producers, longtime advocates for tariffs on Canadian imports, saw modest gains.
In Congress, reactions split along partisan lines. Republican Senator Josh Hawley of Missouri praised Trump’s “decisive action to defend American interests,” while Democratic Representative Pramila Jayapal of Washington called the move “reckless escalation that hurts workers on both sides of the border.” Bipartisan leaders of the Senate Finance Committee announced plans to hold hearings on the state of U.S.-Canada trade relations next week.
For now, the future of bilateral trade talks hangs in the balance. Canadian officials have signaled openness to dialogue, but Trump’s declaration leaves little room for immediate reconciliation. As the dust settles, stakeholders on both sides of the 49th parallel are left grappling with the fallout from a 30-second video that has upended decades of diplomatic consensus.
