US president Donald Trump announced on Thursday that all trade discussions with Canada had been “terminated” following the release of a Canadian advertisement criticising his tariff policies and featuring former President Ronald Reagan speaking against trade barriers. The move marks a sharp escalation in rhetoric between Washington and Ottawa, threatening to derail efforts to restore bilateral cooperation.
Ad sparks presidential backlash
The controversy began when a Canadian business coalition aired a television and online campaign using archival footage of Ronald Reagan from the 1980s, warning against “the folly of tariffs and economic isolation.” The advertisement, widely shared across social media, implicitly targeted Trump’s recent decision to raise import duties on Canadian aluminium and agricultural products. In response, Trump accused Canada of “egregious behaviour and propaganda,” saying the ad represented “a total lack of respect” for the United States and its trade stance.
Talks frozen amid broader tensions
The White House confirmed that all ongoing discussions on revising cross-border trade frameworks had been suspended “until further notice.” Officials in Ottawa expressed disappointment but avoided direct confrontation, stating that “Canada continues to value its trading relationship with the United States and remains open to constructive dialogue.” The breakdown follows months of friction over tariffs, energy exports, and agricultural subsidies — issues that had already strained North American trade relations since the US withdrew from several regional frameworks.
Economic and diplomatic implications
Analysts warned that the suspension could unsettle sectors reliant on cross-border supply chains, particularly automotive, steel, and dairy industries. The decision also introduces uncertainty into broader North American trade cooperation, with Mexico likely monitoring developments closely given its shared integration with both economies. Financial markets reacted with mild volatility, as investors assessed whether the statement represented a negotiating tactic or a deeper policy shift.
A test of political messaging
Observers noted that Trump’s response underscores his sensitivity to media portrayals and his tendency to link public criticism directly to policy retaliation. The Canadian ad’s use of Reagan — a Republican icon known for championing free trade — appears to have intensified the personal nature of the reaction. Commentators in both countries have urged restraint, warning that political theatrics could undermine regional economic stability at a time when global trade faces renewed uncertainty.
Newshub Editorial in North America – 24 October 2025
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