Why a television ad made Donald Trump furious enough to end trade talks with Canada

US President Donald Trump on Thursday announced that he was terminating trade negotiations with Canada over what he called a “fake” anti-tariff advertisement featuring the late President Ronald Reagan.

In a post on his Truth Social platform, Trump said the ad campaign, which aired in the United States and included audio and video of Reagan criticising tariffs, was a “fake” attempt to undermine his trade policies and interfere with US court proceedings on the legality of his import levies.

“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about tariffs. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A.,” Trump wrote. “Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

The Ronald Reagan Presidential Foundation and Institute said in a statement that the Government of Ontario had created the ad using “selective audio and video” from Reagan’s 1987 radio address on free and fair trade, saying the material “misrepresents” the former president’s words and was used without permission.

“The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter. We encourage you to watch President Reagan's unedited video on our YouTube channel,” the foundation said.

The ad was part of a campaign led by Ontario Premier Doug Ford, who said last week he wanted to “blast” Reagan’s message about tariffs “to the American people.”

Trump’s decision threatens to upend months of delicate diplomacy between Washington and Ottawa, led by Canadian Prime Minister Mark Carney, who has sought to stabilise trade relations with the White House ahead of a scheduled review of the US-Mexico-Canada Agreement (USMCA).

More than three-quarters of Canada’s exports go to the United States, and nearly 3.6 billion Canadian dollars (US$2.7 billion) in goods and services cross the border daily.

The latest rupture also comes as Trump prepares for a high-stakes trip to Asia.

Earlier this week, Trump had commented on seeing the Ontario-sponsored ad on US television.

“I saw an ad last night from Canada,” he told reporters. “If I was Canada, I’d take that same ad also.”