Trump bails on trade talks with Canada over anti-tariff ad featuring Reagan

President Donald Trump said he was abruptly ending trade talks with Canada on late Thursday, citing an anti-tariff ad that appeared to irritate him and reviving a dispute with the major U.S. trading partner.

The president claimed Canada was "fraudulently using an advertisement" featuring a radio address from former President Ronald Reagan, bashing tariffs as a policy that jeopardizes U.S. jobs. The Ottawa government introduced the television ad a week ago to argue against U.S. tariffs on Canada.

Trump, though, accused Canada of attempting to interfere with a future Supreme Court decision that will determine the legality of his global tariffs.

"Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED," Trump wrote in a social media post.

The White House did not immediately respond to a request for comment. White House economic advisor Kevin Hassett said on Friday morning that the Trump administration was "frustrated" with the Canadian government's trade positions in ongoing negotiations.

"The president I'm sure has his reasons," Hassett said in a Fox Business interview. "Sometimes when you're frustrated a timeout is the right call. It's probably a good time to take a break for a little while."

Hassett didn't say when he thought trade talks would get back on track. He said he expected Trump would reopen discussions with the Canadian government sometime before the end of his second term.

Trump's sudden move injects fresh uncertainty with Canada, one of the top U.S. trading partners. It was the second time this year that the president pulled the plug on trade negotiations. In May, Trump cancelled trade discussions with Canada over a 3% tax on digital services that it was about to impose on U.S. tech giants. He labeled it a "direct" attack on the U.S. Three days later, Canada shelved the tax.

Trade negotiations with Canada have sputtered on without a final accord, much less a preliminary agreement like those with the European Union and South Korea. The U.S. has levied 50% tariffs on Canadian steel and aluminum in conjunction with a 25% tariff on other Canadian imports.

Trade between Canada and the U.S. totaled $900 billion in 2024, according to the Office of the U.S. Trade Representative. Canada's main exports to the U.S. consist of energy products and vehicles.

Reagan delivered the radio address in 1987, shortly after he imposed limited tariffs on Japan, viewed throughout the 1980s as an economic rival to the U.S. The import taxes hit Japanese electronics, a relatively tiny slice of U.S. imports at the time.

While the Canadian ad spliced together different parts of the speech, it did not alter Reagan's overall argument laying out the drawbacks of sweeping protectionism.

"High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars," Reagan said in the five-minute address. "Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs."

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