Washington( The COW News DIgital) U.S. President Donald Trump has abruptly announced the termination of all trade negotiations with Canada, marking a sharp escalation in tensions between the two North American neighbors. The move follows a controversy over a Canadian advertisement that allegedly misrepresented a historic statement by former U.S. President Ronald Reagan.
In a statement released from the White House late Friday, President Trump said the decision was made after Ontario’s provincial government aired a campaign opposing U.S. trade tariffs. The advertisement reportedly used an excerpt from Reagan’s 1987 speech criticizing import tariffs — a clip that the Reagan Foundation later said had been used without permission and taken out of context.
“The Reagan quote was twisted to fit a political message that undermines America’s trade principles,” Trump declared. “Until Canada shows respect for fair communication and honest diplomacy, there will be no further trade discussions.”
The dispute adds a new layer of strain to U.S.-Canada relations, which have already been tested by disagreements over tariff policies, energy exports, and agricultural trade. Experts suggest that Trump’s latest announcement could stall ongoing efforts to modernize bilateral trade frameworks and disrupt cross-border supply chains critical to both economies.
Economic analysts warn that the move might have immediate repercussions on North American markets, particularly in sectors such as automotive manufacturing, steel, and agriculture — industries deeply integrated between the two countries. Canada remains one of the United States’ largest trading partners, with bilateral trade exceeding $700 billion annually.
The Reagan Foundation, in a separate statement, condemned the Ontario advertisement, saying that Reagan’s words were “selectively edited” to serve a misleading narrative. Canadian officials have yet to issue a formal response but are reportedly reviewing the situation.
Political observers note that Trump’s decision aligns with his renewed “America First” approach, aimed at protecting U.S. manufacturing interests while exerting maximum pressure on trade partners. The move also comes amid rising domestic political activity ahead of the 2026 congressional elections, suggesting that Trump may be seeking to appeal to his base through strong nationalist rhetoric.
Diplomats in Ottawa expressed hope that communication channels would remain open despite the setback, emphasizing that “Canada values its deep and historic economic ties with the United States.”
