Ontario quickly caves to Trump and promises to pull the offending Reagan ad that killed Canada trade talks

The post on former President Donald Trump’s social media site Thursday night escalated tensions between the United States and its northern neighbor, Canada. The controversy stemmed from Canadian Prime Minister Mark Carney’s announcement that Canada plans to double its exports to countries outside the U.S. due to the threat posed by Trump’s tariffs.

### Trump’s Response and U.S. Government Reaction

White House officials described Trump’s reaction as the culmination of long-standing frustration over Canada’s trade negotiation strategies. On Friday morning, Trump wrote on his social media site, “CANADA CHEATED AND GOT CAUGHT!!!” He accused Canada of fraudulently taking out an ad claiming that former President Ronald Reagan opposed tariffs, when Trump argued that Reagan actually supported tariffs for national security reasons.

Trump also alleged that the ad aimed to influence the U.S. Supreme Court ahead of an upcoming hearing that could decide the president’s authority to impose sweeping tariffs—a cornerstone of his economic policy. Trump expressed a strong personal interest in the case, stating he would like to attend the oral arguments.

### The Controversial Ad and Ontario Premier’s Response

The ad in question was financed by Ontario’s provincial government, not the Canadian federal government. Ontario Premier Doug Ford, whose province sponsored the advertisement, initially refused to back down. On Friday, Ford posted that Canada and the U.S. are allies, emphasizing that Reagan believed both countries were “stronger together.” He included a link to a 1987 speech where Reagan expressed opposition to tariffs.

Ford announced that Ontario plans to invest approximately $54 million CAD ($40 million USD) to air the ad across multiple American television stations, featuring audio and video footage of Reagan speaking against tariffs. Despite the controversy, the ad was scheduled to continue airing over the weekend, including during Game 1 of the World Series between the Toronto Blue Jays and the Los Angeles Dodgers on Friday night.

However, after discussions with Prime Minister Carney, Ford decided to pause the advertising campaign effective Monday, allowing for the resumption of trade talks. “Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses,” Ford said. “We’ve achieved our goal, having reached U.S. audiences at the highest levels.”

### Canadian Government’s Position

Mark Carney emphasized that the Canadian government remains ready to continue discussions aimed at reducing tariffs in specific sectors. “We can’t control the trade policy of the United States. We recognize that that policy has fundamentally changed from the 1980s,” Carney stated before departing for the Association of Southeast Asian Nations (ASEAN) summit in Malaysia, which Trump was also set to attend.

### Reagan Foundation’s Response

The Ronald Reagan Presidential Foundation and Institute condemned the ad for misrepresenting Reagan’s 1987 “Presidential Radio Address to the Nation on Free and Fair Trade.” The foundation stated that Ontario did not have permission to use or edit Reagan’s remarks and is reviewing legal options. The foundation, located in Simi Valley, California, is responsible for maintaining the Ronald Reagan Presidential Library and Museum and is governed by a board including prominent Republican figures.

Following the foundation’s statement, Trump doubled down, calling the ad “FAKE” and asserting that tariffs are “VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.” He declared, “Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

### Historical Context and Administration Insights

Contrary to Trump’s claims, Reagan often criticized tariffs and protectionist policies that interfered with free commerce, as highlighted in his 1987 radio address.

White House spokesman Kush Desai referred to the Ontario ad as the “latest example of how Canadian officials would rather play games than engage with the Administration.” Kevin Hassett, director of the National Economic Council, criticized Canada for its “lack of flexibility” and mentioned lingering tensions stemming from relations with former Prime Minister Justin Trudeau.

Carney had met with Trump earlier in the month to ease trade tensions as the United States, Canada, and Mexico prepared to review the U.S.-Mexico-Canada Agreement (USMCA), which Trump had originally negotiated during his first term but later criticized.

### Economic Stakes and Past Conflicts

More than 75% of Canadian exports go to the United States, with nearly CAD $3.6 billion (USD $2.7 billion) worth of goods and services crossing the border daily.

Initially, Trump appeared unbothered by the Ontario ad, remarking during a lunch with Republican senators that “If I was Canada, I’d take that same ad also.” Ontario had purchased over $275,000 in ad reservations for the campaign, which aired in 198 out of 210 U.S. media markets this month. The ad was broadcast most frequently in New York, Washington, D.C., Harrisburg, Pennsylvania, and West Palm Beach, Florida.

Previously, Ford had drawn Trump’s attention with an electricity surcharge targeting U.S. states, which led to Trump doubling steel and aluminum tariffs on Canadian goods. In response, Canada imposed retaliatory levies on certain U.S. products in April, although it exempted select automakers through remission quotas.

Trump’s tariffs have significantly impacted Canada’s automotive sector, especially in Ontario. As a result, companies like Stellantis have announced plans to move production lines from Ontario to U.S. states such as Illinois.

*Associated Press writers Maya Sweedler and Paul Wiseman in Washington contributed to this report.*
https://fortune.com/2025/10/24/canada-tariffs-tv-ad-trump-carney-ontario-prime-minister-trade-what-happened/

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