Trump terminates Canada trade talks over Reagan advert

Trucks cross the Ambassador Bridge connecting Windsor, Canada, to Detroit, Michigan amid escalating US-Canada trade tensions. (Illustrative image) (Photo by JEFF KOWALSKY/AFP via Getty Images) Getty Images

Donald Trump has terminated all trade negotiations with Canada following a dispute over an advertisement featuring former President Ronald Reagan. The US President announced the decision on Truth Social on Thursday night, citing what he called Canada's "egregious behavior".

The row centres on an Ontario government advertisement that used edited remarks from Reagan speaking against tariffs. Trump wrote: "Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED."

Reagan controversy escalates

According to The Guardian, the Ronald Reagan Foundation stated that Ontario did not receive permission to use and edit Reagan's 1987 remarks. The Independent reports that Reagan's original speech was actually defending tariffs on Japanese semiconductors for unfair trade practices.

The Daily Mail reveals that Ontario has allocated $75 million CAD for its anti-tariff advertising campaign. The controversy has created political complications as Doug Ford's Conservative party competes with Mark Carney's Liberal party over trade strategy.

Current tariff structure

Trump has imposed a 35% levy on Canadian imports, though he has allowed exemptions for goods covered under the USMCA free trade agreement. The agreement was negotiated during Trump's first presidential term with Mexico and Canada.

The President has also implemented sector-specific tariffs on Canadian goods. These include 50% on metals and 25% on automobiles, significantly impacting cross-border trade.

Economic implications

The Guardian reports that Mark Carney aims to double Canadian exports to countries outside the US due to ongoing tariff threats. The trade relationship between the two nations involves approximately $3.6 billion in daily commerce.

The termination of negotiations represents a dramatic escalation in US-Canada trade tensions. Further developments in the dispute are expected as both countries assess their next steps.

Sources used: "BBC", "The Guardian", "Daily Mail", "Independent" Note: This article has been created with Artificial Intelligence (AI).