Trump Halts Canada Trade Negotiations Over Reagan Advertisement

President Donald Trump announced the immediate termination of all trade negotiations with Canada on Thursday evening. The decision followed Ontario’s release of an advertisement featuring former President Ronald Reagan, who criticized tariffs. The move adds uncertainty to North American commerce ahead of the scheduled USMCA review.

Advertisement Triggers Presidential Response

Trump posted on Truth Social late Thursday, describing Canada’s advertisement as “fraudulent” and “egregious.” The Ontario government confirmed that it commissioned a $53.5 million campaign, which features a 1987 Reagan recording warning against protective trade measures. The advertisements began airing this week on major U.S. networks, including Newsmax and Bloomberg.

“TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY AND ECONOMY OF THE U.S.A.,” Trump wrote. “Based on their behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

The president has maintained an aggressive stance on tariffs throughout his current term. Recent duties on Canadian exports have reached double-digit percentages. Trump previously suggested Canada could join the United States as the 51st state, comments that drew sharp criticism from Canadian officials.

Canada’s Conciliatory Efforts Rejected

The timing of Trump’s announcement came as a surprise to many observers. Canada had taken significant steps to reduce trade friction in recent months. Ottawa announced plans in late August to eliminate retaliatory tariffs on U.S. goods. The proposal targeted a 25% duty on various American consumer products covered under the USMCA.

Canadian officials positioned the tariff removal as a goodwill gesture before the summer trade pact review. The suspension of negotiations eliminates any near-term prospect for bilateral compromise. The Canadian Prime Minister’s office has not yet issued a formal response to Trump’s declaration.

The Canada decision extends a pattern of confrontational trade policy. The Trump administration imposed tariffs on more than 60 countries in August, with rates ranging from 10% to 50%. China remains the primary focus of U.S. trade enforcement efforts.

Cryptocurrency markets experienced significant volatility following previous trade announcements. Investors view tariff escalations as threats to global economic stability. Digital assets often decline when geopolitical tensions rise.

A breakthrough may emerge from upcoming U.S.-China discussions. White House Press Secretary Karoline Leavitt confirmed President Xi Jinping will visit Washington later this month. The summit represents the first face-to-face meeting between the two leaders since Trump’s inauguration.

Bloomberg Economics estimates an 80% probability of a preliminary U.S.-China agreement by November 10. Market analysts believe such a deal could provide temporary relief for risk assets. The outcome of the Xi-Trump meeting may determine whether other trading partners, including Canada, can resume productive negotiations.

The termination of Canadian trade talks demonstrates the administration’s willingness to escalate disputes over symbolic issues. The Reagan advertisement controversy now overshadows months of diplomatic groundwork.