Trump Shuts Down Canada Trade Talks Over “Fake” Ad

(The Post News)– In a dramatic escalation of trade tensions, US President Donald Trump announced on Thursday the immediate termination of all trade negotiations with Canada. The decision, delivered via his Truth Social platform, was triggered by a controversial advertisement that Trump labelled “fraudulent” and “egregious.”

The announcement came after Canada’s Trade Minister Dominic LeBlanc had said discussions with the US were “making progress” but noted that several key issues were yet to be settled.

A Reagan Ad Sparks Diplomatic Fallout

The diplomatic rupture began with an ad campaign featuring former US President Ronald Reagan criticizing tariffs. Trump accused the neighboring country of misusing Reagan’s image to sway US judicial decisions, calling the ad “fake” and “egregious.”

According to CNN, Trump claimed the ad was “a direct and blatant attack on the U.S.” and used it to justify ending negotiations. The situation escalated further when the neighboring country introduced a digital services tax targeting large tech firms, many of which are American.

Trump interpreted it as an economic assault, prompting his administration to sever trade discussions. Additionally, Trump posted, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about tariffs.

“The ad was for $75,000. They only did this to interfere with the decision of the U.S. Supreme Court and other courts,” the president wrote on Truth Social. According to Trump, the U.S. economy and national security both heavily rely on tariffs. He further declared that all trade negotiations with Canada have been terminated due to their atrocious behavior.

The ad, part of a $75 million campaign, portrayed Reagan warning that tariffs on foreign goods could lead to job losses and trade wars—an implicit critique of Trump’s protectionist policies. Trump, who has long defended tariffs as essential to US national security and economic strength, viewed the ad as a direct affront to his administration’s trade agenda.

Canada: Caution and Concern

Prime Minister Mark Carney, speaking earlier in the week, emphasized his government’s commitment to diversifying trade partnerships beyond the United States. “We are working to double our exports to other global markets,” Carney said, citing the unpredictability of US trade policy under Trump as a key motivator.

Meanwhile, Trade Minister Dominic LeBlanc had previously indicated that discussions with the US were progressing, making Trump’s announcement all the more abrupt. Ontario Premier Doug Ford acknowledged that the ad had caught the US president’s attention, stating, “I heard that the president heard our ad. I’m sure he wasn’t too happy.”