United States President Donald Trump announced on Thursday that he is canceling all trade negotiations with Canada, pointing to an Ontario’s contentious ad which he described as “eregious” as the reason.
In a post on his social media site, he wrote “Because of their eregious behavior, ALL TRADE TALKS WITH CANADA ARE HEREBY
In addition to halting negotiations, the administration imposed a 35% tariff on Canadian imports, with the auto and metals industries being the most severely impacted: 25% for the auto industry, and 50% for the metal industry.
But even after raising these tariffs, Trump excluded goods covered under the U.S., Canada, and Mexico trade pact, or USMCA. After a one-minute Ontario government ad featuring a clip from a 1987 Reagan speech against tariffs, the altercation broke out. The commercial, which urged opposition to trade barriers, was narrated over pictures of Canadian and American icons.
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Ontario Premier Doug Ford defended the campaign, saying his province would “never stop making the case against American tariffs on Canada.”.
In retaliation, the Ronald Reagan Presidential Foundation charged Ontario with “misrepresenting” Reagan’s remarks and altering and misusing his words without his consent. In response, Canadian Prime Minister Mark Carney said that even if the negotiations fail, Canada will not grant unfair access to its markets.
According to him, if United States measures become unmanageable, Canada would do what it needs to do to defend its economy. Trump has already threatened to impose significant tariffs on Canadian goods earlier in 2025.
The pressure had intensified when Canada imposed a digital services tax on American tech firms, which the United States perceived as hostile. Later, under pressure, Canada eliminated that tax.
For a long time, the United States has used tariff policy as a classic trade diplomacy tactic. The same tactics of threats, penalties, and economic pressure were employed in Trump’s trade disputes with China and Europe during his first term in office.
