In a late-night post on Truth Social, Trump declared that "ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED," after calling a Canadian ad featuring former President Ronald Reagan "fraudulent" and "FAKE." The ad, broadcast on U.S. television, used audio from a 1987 Reagan radio address in which he criticized tariffs and warned of trade wars.

The move threatens to derail progress made during recent talks, including a meeting earlier this month between Trump and Canadian Prime Minister Mark Carney, where both sides agreed to prioritize steel, aluminum, and energy trade issues. Now, that agenda is in limbo.

Trump claimed the ad aimed to influence a pending Supreme Court decision on the legality of his tariff policies. In the clip, Reagan warns, "Such trade barriers hurt every American worker and consumer," and highlights the risks of retaliation and job losses. Trump responded by insisting Reagan had actually "loved tariffs," accusing the Ontario government of manipulating the footage.

The Ronald Reagan Foundation backed Trump's claim to some extent, stating the ad used "selective audio and video." But historical records show Reagan reluctantly imposed tariffs on Japan while criticizing broader protectionist policies at the time.

Canada continues to face 35% U.S. tariffs on exports not covered by the U.S.-Mexico-Canada Agreement (USMCA), including specific duties on steel, aluminum, automobiles, and lumber. Although the bulk of trade remains under USMCA, bilateral tensions over tariff enforcement and policy alignment have persisted.

This is not the first time Trump has walked away from Canada negotiations. In June, he also suspended talks over Canada's planned digital services tax, only to resume discussions after the tax was shelved.

Canadian officials have voiced frustration but continue to emphasize the long-standing relationship. Ontario Premier Doug Ford, in a Friday post on X, reiterated that "Canada and the United States are friends, neighbours and allies," and shared Reagan's full five-minute speech. "God bless Canada and God bless the United States," Ford wrote.

The sudden breakdown comes at a sensitive time, as the three North American nations begin preparing for a scheduled review of USMCA next year. Industry groups across the continent had hoped recent diplomatic momentum would ease tariffs and promote supply chain stability.

Instead, the rupture underscores how political narratives and historical figures like Reagan are being wielded in the high-stakes realm of trade diplomacy-with tangible implications for agribusiness, manufacturing, and bilateral market access.