Trump suspends trade talks with Canada, citing Ontario government ad

US President Donald Trump on Thursday night announced he was suspending trade talks with Canada, citing an Ontario government advertisement that uses archival footage of Ronald Reagan's 1987 speech denouncing tariffs.

Trump's decision to suspend all trade talks with Canada was "unanticipated" but "not entirely surprising", given the US administration's erratic negotiating stance over the past year, said Adam Chapnick, a professor at the Canadian Forces College.

"This is not the first time that the US President has abruptly shifted his position on trade with Canada over the last 10–12 months," Chapnick told China Daily.

"It follows that inasmuch as the move was unanticipated, it cannot be considered entirely surprising. America's negotiating posture throughout 2025 has been unpredictable," he said.

Trump posted on Thursday night that "The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is fake, featuring Ronald Reagan speaking negatively about tariffs".

"They only did this to interfere with the decision of the US Supreme Court, and other courts.

"Tariffs are very important to the national security, and economy, of the USA. Based on their egregious behavior, all trade negotiations with Canada are hereby terminated," Trump posted.

The US leader claimed that the ad influenced his decision, though Chapnick said the connection remains unclear.

"It is difficult to answer this question," he said.

"Last week, after the president first saw the ad on television, he commented that he would run the ad himself if he were in Canada's position and he did not appear to be particularly offended by it.

"At this point, it is unclear what changed, and I therefore am hesitant to speculate on the White House's motivations," he said.

Chapnick noted that discussions had been progressing positively.

"From what I have understood, the talks were actually coming along quite well and there was a good chance that a joint announcement was set to be made when the president and the prime minister saw each other in Asia," he said.

Canadian Prime Minister Mark Carney set a goal Oct 22 for Canada to double its non-US exports in the next decade, saying American tariffs are causing a chill in investment.

Carney said many of Canada's former strengths — based on close ties to America — have become vulnerabilities.

"The jobs of workers in our industries most affected by US tariffs — autos, steel, lumber — are under threat. Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us," Carney said.

Carney reiterated that the decades-long process of deepening economic ties between Canada and the United States has fundamentally changed.

"The US has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression.

"We have to take care of ourselves because we can't rely on one foreign partner," Carney said.

Asked about whether Canada is trying to reduce its dependence on the US, Chapnick said that while the government has signaled its intent, the outcome will depend on the private sector.

"Governments can set policies and targets, but the private sector will ultimately determine whether there is an actual shift in Canada's economic orientation," he said.

He added that Carney "has been extremely clear … that his intent is to create pathways for Canadian businesses to increase their exports to countries beyond the United States."

Ontario Premier Doug Ford later said he will pull the controversial Reagan anti-tariff ad on Monday.

Ford said on social media he made the decision to "pause" the campaign after "speaking with Prime Minister Carney" so that trade talks between the two countries "can resume."