President Donald Trump declared late Thursday that the United States is immediately terminating all trade negotiations with Canada, triggered by a controversial television advertisement from the province of Ontario. The ad, which features edited audio from former President Ronald Reagan criticizing tariffs, has been branded "FAKE" and "fraudulent" by Trump, who accused Canada of meddling in U.S. judicial matters to undermine his tariff policies.

"The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement... featuring Ronald Reagan speaking negatively about tariffs," Trump fumed on his Truth Social platform. "The ad was for $75,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED."

The advertisement, launched last week by Ontario Premier Doug Ford, aims to rally opposition against U.S. tariffs on Canadian goods. Ford promoted it on X, stating, "It’s official: Ontario’s new advertising campaign in the U.S. has launched. Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together." The spot selectively quotes Reagan’s 1987 radio address on free trade, warning that "high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars."

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The Ronald Reagan Presidential Foundation and Institute swiftly condemned the ad, posting on X that it "misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987." The foundation noted that Ontario did not seek permission to use or edit the remarks and is now "reviewing its legal options." This backlash amplified Trump’s outrage, framing the ad as a direct assault on American sovereignty.

The move comes against a backdrop of fraying U.S.-Canada relations. Just weeks ago, Canadian Prime Minister Mark Carney visited the White House in early October, where the two leaders appeared to mend fences after previous tariff disputes. However, Carney has since pivoted aggressively, announcing plans to double Canada’s exports to non-U.S. markets to shield the economy from Trump’s proposed 25% tariffs on imports. Carney’s office had no immediate comment on Trump’s dramatic announcement Thursday night.

Experts warn that this rupture could devastate bilateral trade, which topped $1 trillion annually under the USMCA agreement. Tariffs, a cornerstone of Trump’s "America First" agenda, have already sparked retaliatory measures from Canada, including duties on U.S. agricultural products and steel. With ongoing Supreme Court challenges to the tariff program’s legality—potentially influenced by the ad’s timing—the stakes couldn’t be higher.

Canadian officials and business leaders expressed shock early Friday. "This is a disproportionate response to a legitimate public awareness campaign," said one anonymous Ottawa trade advisor. Ontario’s Ford, undeterred, doubled down in a morning statement: "We’ll continue fighting for fair trade—ads or no ads." Meanwhile, Wall Street futures dipped in after-hours trading, signaling investor fears of a broader North American trade war.

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