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Evening Standard
Evening Standard
Michael Howie

Donald Trump drops trade bombshell as he axes Canada talks over 'fake' Ronald Reagan advert

Donald Trump has announced trade talks with Canada have been terminated following what he called a fraudulent advert in which former and late President Ronald Reagan spoke negatively about tariffs.

The US President imposed tariffs on Canadian steel, aluminium and automobiles earlier this year, prompting Ottawa to respond in kind. The two sides have been in talks for weeks on a potential deal for the steel and aluminium sectors.

“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” Trump wrote on Truth Social.

He went on: “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED. Thank you for your attention to this matter! President DJT”.

Ontario Premier Doug Ford said earlier this week the advert from his province with anti-tariff messaging had caught Trump's attention. The ad showed Mr Reagan criticising tariffs on foreign goods while saying they caused job losses and trade wars.

Donald Trump’s Truth Social post announcing trade talks with Canada are ‘terminated’ (Donald Trump/ TruthSocial)

"I heard that the president heard our ad. I'm sure he wasn't too happy," Mr Ford said on Tuesday.

The Ronald Reagan Presidential Foundation issued a statement late on Thursday saying the ad by the government of Ontario was "using selective audio and video" of Mr Reagan and that the foundation was reviewing its legal options.

"The ad misrepresents the Presidential Radio Address (by Mr Reagan in 1987), and the Government of Ontario did not seek nor receive permission to use and edit the remarks," the foundation said in its statement.

The Canadian government had no immediate comment.

The video uses a clip of Mr Reagan’s 1987 national radio address that focused on foreign trade.

“When someone says 'let's impose tariffs on foreign imports', it looks like they're doing the patriotic thing by protecting American products and jobs. And sometimes, for a short while it works, but only for a short time," Mr Reagan says.

“But over the long run, such trade barriers hurt every American, worker and consumer.

“High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars... Markets shrink and collapse, businesses and industries shut down and millions of people lose their jobs,” Mr Reagan adds.

Trump has used tariffs as leverage on many countries around the world.

Trump's trade war has increased US tariffs to their highest levels since the 1930s and he has regularly threatened more duties, sparking concerns among businesses and economists.

Canadian Prime Minister Mark Carney told reporters on Thursday that Canada will not allow unfair US access to its markets if talks on various trade deals with Washington fail.

Next year, the US, Canada and Mexico are due to review their 2020 continental free-trade agreement.

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