The US-Canada trade war has escalated significantly, with president Trump announcing an immediate termination of “all trade negotiations” with Ottawa. The president’s decision was a direct response to a Canadian ad.
The ad, sponsored by the hard-hit province of Ontario, used a 1987 speech by Ronald Reagan to argue against tariffs. Trump blasted the ad as “fraudulent” and an act of “egregious behavior.”
This move threatens a massive trade partnership, with more than three-quarters of all Canadian exports going to the United States. Prime minister Mark Carney has stated he will continue to seek negotiations and also work to diversify Canada’s trade.
The conflict stems from tariffs, now at 35%, that the Trump administration imposed on Canadian steel, timber, and cars. Ontario premier Doug Ford, who championed the ad, has been one of the most vocal critics of the US border taxes.
The ad itself is now controversial. The Ronald Reagan Presidential Foundation issued a statement that the clips were used without permission and “misrepresent” the speech, as they were “selective.”