President Donald Trump announced late on Thursday, October 23, 2025, that he was immediately ending all trade negotiations with Canada. The stated reason for this abrupt cancellation was a controversial Canadian television advertisement that featured the voice of former US President Ronald Reagan criticizing tariffs.

Here are the full details of the controversy and cancellation:

The Controversial Advertisement

• Sponsor: The advertisement was launched by the government of the Canadian province of Ontario, led by Premier Doug Ford, as part of a campaign to push back against new US tariffs.
• Content: The ad featured a minute-long excerpt of audio from a 1987 radio address by former President Ronald Reagan on free and fair trade. In the clip, Reagan criticizes the economic damage caused by high tariffs, stating they can lead to trade wars, market collapse, and job losses.
• Target Audience: Ontario’s government stated the campaign was specifically aimed at American audiences, particularly in Republican districts, to make the case against the US tariffs using the words of a revered Republican figure.
• Cost: The ad campaign was reportedly a multi-million-dollar effort by the Ontario government.

President Trump’s Reaction and Rationale

President Trump took to his social media platform to announce the decision and explain his reasoning:

1. Accusation of Fraud: Trump accused Canada of “fraudulently used an advertisement, which is FAKE,” featuring Reagan speaking negatively about tariffs.
2. Citing the Reagan Foundation: He cited a statement from the Ronald Reagan Presidential Foundation and Institute, which had posted that the ad “misrepresents” Reagan’s 1987 address by using “selective audio and video” and that the Ontario government did not seek permission for its use. The Foundation also stated it was reviewing its legal options.
3. Claim of Judicial Interference: Trump made the extraordinary claim that the ad was intended to “interfere with the decision of the U.S. Supreme Court, and other courts,” which are due to review lower-court rulings regarding his authority to impose tariffs.
4. Termination: Based on what he called the “egregious behavior,” he declared, “ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

Context and Fallout

• Ongoing Trade Tensions: The cancellation came amid months of rising trade tensions between the two countries, which saw the US impose steep tariffs on Canadian imports, including steel and aluminum, and Canada impose retaliatory levies.
• Recent Talks: The terminated negotiations had been taking place in Washington following a meeting between Prime Minister Mark Carney and President Trump just weeks earlier, with the goal of securing deals on specific sectors to ease the tariffs.
• Canadian Response: The office of Ontario Premier Doug Ford defended the ad, arguing it used an unedited excerpt from a public domain address and that Reagan was a strong supporter of free and fair trade. The Canadian government did not immediately respond to Trump’s announcement.
• Impact: The sudden end to talks is expected to escalate the trade conflict, further threatening Canadian industries heavily reliant on cross-border trade and casting a shadow over the future of the North American trading relationship.