Canadian Ad Weaponizes Reagan's Legacy, Trump Ends Trade Talks

President Donald Trump abruptly terminated all trade negotiations with Canada on October 24, 2025, after accusing the Canadian government of "fraudulently" using a television ad featuring former U.S. President Ronald Reagan to criticize his tariffs and influence an upcoming Supreme Court ruling on their legality. The ad, produced by Ontario Premier Doug Ford's provincial government, aired across U.S. networks and featured Reagan's 1987 radio address opposing tariffs. Ford announced Friday he would pause the campaign effective Monday to allow negotiations to resume, though the ads will continue airing this weekend, including during World Series games.

Trump's decision to end talks escalated tensions between the two nations, which have been grappling with steep U.S. tariffs on Canadian steel, aluminum, autos, and lumber since 2024. The tariffs, which Trump has defended as vital to U.S. national security and economic strength, have hit Canada's auto sector particularly hard, with companies like Stellantis shifting production lines from Ontario to the U.S. Canadian Prime Minister Mark Carney, who has sought to double exports to non-U.S. markets, acknowledged the breakdown but emphasized Canada's commitment to resuming talks when the U.S. is ready, as PBS reported.

The dispute centers on an ad that Ontario spent $75 million Canadian (US$54 million) to air in 198 U.S. media markets, using Reagan's 1987 speech to argue against trade barriers. The Ronald Reagan Presidential Foundation and Institute condemned the ad as a "misrepresentation" of Reagan's message, claiming Ontario used the speech without permission and edited it to fit a "pro-free trade narrative," the Los Angeles Times reported. Trump amplified the foundation's claims, asserting on Truth Social that Canada had "cheated" by exploiting Reagan's legacy to undermine his tariff policy, which he called essential for protecting U.S. jobs and security.

Ford, a populist conservative who opposes Carney's Liberal Party, defended the ad as a legitimate effort to "blast" pro-trade messaging to U.S. audiences. He argued Reagan's anti-tariff stance aligned with Canada's interests and that the campaign had already achieved its goal of sparking a national conversation about tariffs, PBS reported. However, the ad's backlash prompted Trump to accuse Canada of "playing games" and to threaten further economic pressure, including the possibility of extending tariffs to other sectors.

The U.S. Supreme Court is set to hear arguments on November 5 in a landmark case determining whether the president can unilaterally impose tariffs under emergency powers, bypassing Congress. Trump has vowed to attend the hearing, calling it "one of the most important cases we've ever had." Legal challenges to his tariffs have so far been upheld in lower courts, which ruled their imposition via the International Emergency Economic Powers Act (IEEPA) was unlawful, according to reporting on the case.

Meanwhile, Carney's government has sought to mitigate the damage from Trump's tariffs by negotiating sector-specific deals and rolling back retaliatory measures taken under former Prime Minister Justin Trudeau. Ontario's decision to pause the ad follows months of escalating rhetoric, including Ford's 2024 move to impose a 25% surcharge on electricity exports to the U.S., which prompted Trump to double steel and aluminum tariffs, according to The Wall Street Journal.

As the two nations navigate the fallout, analysts warn that Trump's "take-no-prisoners" approach to trade has left Canada's economy vulnerable. Over 85% of cross-border trade remains tariff-free under the USMCA agreement, but the recent volatility has forced Canadian businesses to diversify supply chains and seek new markets, according to Tag24. With the Supreme Court's ruling looming, the path to resolution remains uncertain, and the specter of further tariffs looms large over North American trade relations.