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By James Bickerton
News Reporter
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U.S. President Donald Trump announced on Thursday that he had terminated trade negotiations with Canada in response to an advert produced by the government of Ontario featuring historic footage of former President Ronald Reagan arguing that tariffs undermine economic prosperity.
Newsweek contacted Canadian Prime Minister Mark Carney and Ontario Premier Doug Ford for comment on Friday via email outside regular office hours.
Why It Matters
Trump has made sweeping tariffs on American trade partners one of the centerpieces of his economic policy, including a 35 percent tariff on many imports from Canada, though goods covered by the United States-Mexico-Canada Agreement have mostly been excluded.
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This marks another blow to U.S.-Canadian relations, which have been tense since Trump’s repeated suggestion that Canada should join the U.S. as its 51st state. In response to the U.S. president’s statements and trade policies, Canadians have boycotted American products and reduced their tourism to the country.
What To Know
The advert, produced by the government of Ontario, used audio from a radio address Reagan made to the nation concerning tariffs and free trade on April 25, 1987, from Camp David in Maryland.
While the ad didn’t change any of Reagan’s words, it condensed them substantially. The one-minute video uses a snippet of Reagan’s five-minute address. As a result, Reagan appears to say in succession sentences that were separated in the original broadcast.
In the video, the audio of Reagan’s voice says: “When someone says, ‘Lets 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.
“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. Then the worst happens: Markets shrink and collapse, businesses and industry shut down, and millions of people lose their jobs. Throughout the world, there’s a growing realization that the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition. America’s jobs and growth are at stake.”
The Ronald Reagan Presidential Foundation and Institute responded to the advert on X, writing: “The ad misrepresents the Presidential Radio Address, and the Government of Ontario did not seek nor receive permission to use and edit the remarks.
“The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.”
During his full address, which the Ronald Reagan Presidential Foundation and Institute posted on its YouTube channel, the 40th president said: “My fellow Americans, Prime Minister Nakasone of Japan will be visiting me here at the White House next week.
“It’s an important visit because while I expect to take up our relations with our good friend Japan, which overall remain excellent, recent disagreements between our two countries on the issue of trade will also be high on our agenda. As perhaps you’ve heard, last week I placed new duties on some Japanese products in response to Japan’s inability to enforce their trade agreement with us on electronic devices called semiconductors.
“Now, imposing such tariffs or trade barriers and restrictions of any kind are steps that I am loathed to take, and in a moment I’ll mention the sound economic reasons for this, that over the long run such trade barriers hurt every American worker and consumer. But the Japanese semiconductors were a special case. We had clear evidence that Japanese companies were engaging in unfair trade practices that violated an agreement between Japan and the United States. We expect our trading partners to live up to their agreements. As I’ve often said, our commitment to free trade is also a commitment to fair trade.
“But you know, in imposing these tariffs, we were just trying to deal with a particular problem, not begin a trade war. So next week I’ll be giving Prime Minister Nakasone the same message: We want to continue to work cooperatively on our trade problems and want very much to lift these trade restrictions as soon as evidence permits. We want to do this because we feel both Japan and the United States have an obligation to promote the prosperity and economic development that only free trade can bring.
“Now, that message of free trade is one I conveyed to Canada’s leaders a few weeks ago, and it was warmly received there. Indeed, throughout the world there’s a growing realization that the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition. Now, there are sound historical reasons for this. For those of us who lived through the Great Depression, the memory of the suffering it caused is deep and searing, and today, many economic analysts and historians argue that high tariff legislation passed back in that period called the Smoot-Hawley Tariff greatly deepened the depression and prevented economic recovery.
“You see, at first when someone says, ‘Lets 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. What eventually occurs is, first homegrown industry start relying on government protection in the form of high tariffs. They stop competing and stop making the innovative management and technological changes they need to succeed in world markets. And then while all this is going on something even worse occurs. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars.
“The result is more and more tariffs, higher and higher trade barriers, and less and less competition. So soon because of the prices made artificially high by tariffs, that subsidize inefficiency and poor management, people stop buying. Then the worst happens: Markets shrink and collapse, businesses and industry shut down, and millions of people lose their jobs.
“The memory of all this occurring back in the ‘30s made me determined when I came back to Washington to spare the American people the protectionist legislation that destroys prosperity. Now, it hasn’t always been easy. There are those in the Congress—just as there were in the ‘30s—who want to go for the quick political advantage, who risk America’s prosperity for the sake of a short-term appeal to some special interest group, who forget that more than 5 million American jobs are directly tied to the foreign export business and additional millions are tied to imports. Well, I’ve never forgotten those jobs. And on trade issues, by and large, we’ve done well. In certain select cases, like the Japanese semiconductors, we’ve taken steps to stop unfair practices against American products, but we’ve still maintained our basic long-term commitment to free trade and economic growth.
“So with my meeting with Prime Minister Nakasone and the Venice economic summit coming up, it’s terribly important not to restrict the president’s options in such trade dealings with foreign governments. Unfortunately, some in the Congress are trying to do exactly that. I’ll keep you informed on this dangerous legislation because it’s just another form of protectionism, and I may need your help to stop it. Remember, America’s jobs and growth are at stake. Until next week, thanks for listening and God bless you.”
The 1994 North American Free Trade Agreement between the U.S., Canada and Mexico was signed by President George H. W. Bush, who previously served as Reagan's vice-president. It built on negotiations conducted by Reagan during his presidency.
What People Are Saying
President Donald Trump wrote on Truth Social following the Ronald Reagan Presidential Foundation and Institute’s statement: “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs. The ad was for $75,000,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. 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.”
Ben Meiselas, a co-founder of self-styled “pro-democracy” media outlet MeidasTouch, wrote on X: “I just watched the full April 25, 1987 Presidential Address by Ronald Reagan and the full version is actually far more supportive of free trade and against tariffs than the short clip in the Canadian ad.”
Economist Joey Politano wrote on X: “Throwing a hissy fit because the Canadians quoted Ronald Reagan at you, what a picture of the Modern Republican Party.”
Trump returned to the subject in a series of three Truth Social posts on Friday morning. In the first he said: "CANADA CHEATED AND GOT CAUGHT!!!They fraudulently took a big buy ad saying that Ronald Reagan did not like Tariffs, when actually he LOVED TARIFFS FOR OUR COUNTRY, AND ITS NATIONAL SECURITY. Canada is trying to illegally influence the United States Supreme Court in one of the most important rulings in the history of our Country. Canada has long cheated on Tariffs, charging our farmers as much as 400%. Now they, and other countries, can’t take advantage of the U.S. any longer. Thank you to the Ronald Reagan Foundation for exposing this FRAUD. MAKE AMERICA GREAT AGAIN!!!"
He then added: "THE UNITED STATES IS WEALTHY, POWERFUL, AND NATIONALLY SECURE AGAIN, ALL BECAUSE OF TARIFFS! THE MOST IMPORTANT CASE EVER IS IN THE UNITED STATES SUPREME COURT. GOD BLESS AMERICA!!!"
In the third he commented: "THE STOCK MARKET IS STRONGER THAN EVER BEFORE BECAUSE OF TARIFFS!"
What Happens Next
It remains to be seen whether the suspension of trade talks with Canada will turn out to be temporary or have a more long-term effect on the relationship between the neighboring countries.
Update, 10/24/2025, 8:42 a.m. ET: This article was updated to include new Truth Social posts from President Donald Trump and additional information.
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