US President Donald Trump announced on Thursday that he was immediately ending all trade talks with Canada. Trump’s decision comes after he accused Ottawa of misquoting former president Ronald Reagan in an advertising campaign against tariffs.
“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs,” said Trump.
“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.” Trump said in a post on Truth Social.
Reagan ad escalates tensions
In Ontario, an anti-tariff ad was issued using an address made by former US president and Republican Ronald Reagan.
The one-minute ad excerpts a 1987 radio address by Reagan to justify imposing 100 percent tariffs on Japanese electronics over a trade dispute over semiconductors.
In the advert, Reagan’s address also warned on the long term perils of tariffs on foreign imports to the US.
“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 industries shut down and millions of people lose their jobs,” Reagan narrates in the advertisement.
The advertisement was aired on Newsmax and Bloomberg.
Announcing the ad, Ontario Premier Doug Ford said – “I’m a big Ronald Reagan fan . . . We’re going to launch a $75 million ad, and we’re going to repeat that message to every Republican district there is, right across the entire country.”
US Canada tariff row
Following Trump’s ‘Liberation Day’ tariff hikes, Canada found itself subject to new levies on steel, autos, digital services and more.
In a bid to mend ties and diffuse the trade tensions. Canadian prime minister Mark Carney visited Washington DC earlier this month.
During this visit, the two leaders agreed to “work out their differences.”
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Earlier this year, the US imposed a 25 percent tariff on Canadian exports, and 10 percent on energy product exports from Canada.
In response to this, Canada imposed a counter tariff on $30 billion in goods imported from the US, including orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel and more.
Following the tariff on steel and aluminum, Canada imposed a 25 percent tariff on steel, aluminum products from the US, as well as products such as tools, computers and servers, display monitors, sports equipment, and cast-iron products.
