President Donald Trump announced that all trade negotiations with Canada have been formally terminated after a dispute triggered by a controversial advertisement sponsored by the provincial government of Ontario.

According to the White House, the advertisement featured excerpts from Ronald Reagan’s 1987 address on trade, which the Ronald Reagan Presidential Foundation states was used without permission and mis-represented the original context.

The Ontario-funded campaign reportedly cost approximately US $75 million and aired on multiple U.S. networks, aiming to influence American public opinion against the tariffs imposed by the U.S. on Canadian goods. The Reagan Foundation described the ad as “selective” and argued that the audio and video clips were edited in a manner that changed their meaning.

In response, President Trump declared that due to the “fraudulent” use of the former president’s remarks as well as alleged attempts to influence U.S. judicial proceedings, bilateral trade talks are “hereby terminated.” He cited national security and economic considerations as part of the rationale for his decision.

The dispute escalates a broader tension between Washington and Ottawa, especially around issues of tariffs, supply-management in Canadian agriculture, and Canada’s approach to trade with the U.S. In particular, the U.S. has cited Canada’s alleged failure to address the flow of illicit fentanyl across the border as part of the justifications for the tariffs.

On the Canadian side, the campaign’s backers argue it was intended to highlight the negative consequences of protectionist tariffs on both economies and to call for closer cooperation between Canada and the United States in trade matters. But the U.S. administration views it as an unacceptable interference in its policy and legal processes.

With negotiations now paused indefinitely, analysts warn of serious consequences for cross-border trade. The U.S. is expected to impose new tariffs and trade measures on Canadian imports as part of its strategy moving forward, signalling a hardening stance.

In the meantime, Canadian officials have not indicated when or how they will resume talks, and the bilateral trade architecture between the two countries stands on increasingly shaky ground. 

The termination of negotiations marks a significant shift in what had been one of America’s most stable trade partnerships, introducing uncertainty for businesses, farmers, and industries on both sides of the border.