Trump Halts All Trade Negotiations with Canada Over TV Ad

President Donald Trump announced on October 24, 2025, that the United States is terminating all trade negotiations with Canada.

The move stems from a Canadian provincial television advertisement that Trump labelled “fake” and “egregious behaviour” — an ad which featured edited footage of former President Ronald Reagan and criticised U.S. tariff policy.

The Trigger: A Controversial Ad

The ad, produced by the Ontario provincial government, reportedly cost millions of Canadian dollars and was aired in U.S. media. It featured manipulated clips of Reagan’s 1987 radio address to argue that tariffs harm American workers. Trump accused the ad of being designed to influence U.S. court decisions on his tariff authority.

In his statement, Trump claimed:

“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.”

He then declared:

“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

Implications for U.S.–Canada Trade

The decision comes amid ongoing tensions: Canada exports over 75% of its goods to the U.S., with roughly US $2.7 billion crossing the border daily. With bilateral trade so large, halting negotiations may deepen economic strain and uncertainty for industries on both sides of the border.

Also notable is that this dispute overlaps with a review of the 2020 United States–Mexico–Canada Agreement (USMCA). With trade talks terminated, the ability for Canada and the U.S. to settle tariff and trade-policy conflicts may be reduced.

What Comes Next

• Canada may seek to diversify trade away from the U.S. — its Prime Minister, Mark Carney, recently stated an aim to double exports to non-U.S. markets.
• The advertisement campaign raises questions about the use of public relations and media tactics in trade diplomacy. The Reagan Foundation is reportedly reviewing legal action over the ad’s editing without authorization.
• U.S. businesses and consumers may face further impact if tariffs or retaliatory measures escalate, and Canadian industries may feel increased pressure from the halted negotiations.
• Politically, this escalation signals a tougher posture from the U.S. on trade, raising the possibility of broader conflicts with other trading partners as well.

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