Canada Says Ready to Resume Talks After Trump Ends Trade Over Ad Row

Canadian Prime Minister Mark Carney affirmed on Friday that his government is prepared to resume constructive trade discussions with the United States following U.S. President Donald Trump's abrupt decision to terminate negotiations over a provincial advertisement criticising tariffs. Speaking before departing for the ASEAN Summit in Malaysia, Carney emphasised the distinction between controllable factors and external policies, noting that U.S. trade approaches have evolved significantly since the eras of the 1980s and 1990s. He highlighted substantial progress made by Canadian negotiators in recent talks, particularly in resolving issues related to steel, aluminium, and energy sectors, and expressed readiness to build on these advancements once the U.S. side is willing. This stance comes amid escalating bilateral tensions, underscoring Canada's commitment to diplomacy despite the setback.

Trump's announcement late Thursday on Truth Social cited a video ad produced by Ontario's provincial government, which featured archival audio from former U.S. President Ronald Reagan's 1987 radio address denouncing trade barriers as harmful to American workers and consumers. Labelling the footage as "fake" and accusing Canada of interfering in a U.S. Supreme Court case challenging his tariff policies, Trump declared all trade negotiations terminated, emphasising tariffs' role in U.S. national security and economy. The ad, part of a $75 million Ontario campaign targeting U.S. audiences on networks like Fox News and during MLB games, aimed to highlight the economic perils of protectionism. The Ronald Reagan Presidential Foundation criticised the ad for selective editing and unauthorised use, stating it was reviewing legal options.

In response, Ontario Premier Doug Ford announced he would pause the ad campaign effective Monday—after airing during the World Series weekend—to facilitate the resumption of talks, following consultations with Carney. White House National Economic Council Director Kevin Hassett described Trump's move as stemming from accumulated frustration with Canadian negotiators, whom he called difficult counterparts. This incident exacerbates an already strained relationship, where Trump has imposed 35% tariffs on key Canadian exports like steel, aluminium, timber, and autos since spring, prompting retaliatory measures from Ottawa. Ontario, heavily reliant on cross-border trade, has been particularly impacted, with Ford previously threatening energy export halts before de-escalating.

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The U.S.-Canada trade partnership, one of the world's largest with annual flows exceeding $1 trillion, faces heightened uncertainty as Trump's protectionist agenda clashes with Carney's push to diversify exports away from the U.S. market—aiming to double non-U.S. shipments amid ongoing disputes. Historical precedents, including Trump's past threats to annex Canada as the 51st state, add to the volatility, though negotiations have previously been revived after similar rifts. As the Supreme Court deliberates tariff legality, international observers urge restraint to avert broader economic fallout, with Carney's government focusing on multilateral forums like ASEAN to bolster global ties. The episode highlights the fragility of North American economic integration in an era of renewed nationalism.

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