Trump Accuses Canada of Misusing Reagan’s Speech, Halts Trade Negotiations
On the evening of October 23 (local time), former U.S. President Donald Trump announced on social media that the United States will immediately terminate all trade negotiations with Canada.
According to Trump, the decision follows a statement by the Ronald Reagan Presidential Foundation, which accused the Ontario provincial government of using a fraudulent political advertisement featuring edited clips of former President Ronald Reagan criticizing tariffs.
“A Fraudulent Advertisement,” Trump Claims
In his post, Trump stated that “the Ronald Reagan Foundation has just declared that Canada used a fake advertisement containing misleading comments about tariffs.” He claimed the ad was designed to “interfere with U.S. Supreme Court and other judicial rulings.”
Trump emphasized that tariffs are vital to America’s national security and economic interests, adding:
“Given these malicious actions, all trade talks between the United States and Canada are hereby terminated.”
Trump also attached the official statement issued by the Reagan Foundation, which accused the Ontario government of misrepresenting Reagan’s 1987 national radio address on free and fair trade. The foundation said Canada did not seek or receive permission to use or alter Reagan’s words, thereby distorting the message of the original speech.
So far, Canadian officials have not responded to Trump’s allegations.
Background: A Legal Storm Around Tariffs
The abrupt announcement comes amid a broader legal battle over Trump’s tariff policies.
On August 29, the U.S. Court of Appeals for the Federal Circuit ruled that the Trump administration had overstepped its authority when it imposed tariffs on multiple countries. However, the court allowed the current tariff regime to remain in place until October 14, giving the administration time to appeal to the Supreme Court.
On September 3, Trump’s legal team formally filed an appeal, seeking to overturn the lower court’s decision. Reports indicate that the U.S. Supreme Court may take up the case and could issue a ruling by summer 2026.
Potential Fallout: A Risk to the U.S. Treasury
In a September 7 interview, U.S. Treasury Secretary Bessent warned that if the Supreme Court upholds the lower court’s decision declaring the tariffs illegal, the Treasury may need to refund nearly half of all tariffs collected. She called such an outcome “economically disastrous.”
This situation places tremendous pressure on Washington, as both the legal and diplomatic fronts are heating up. Trump’s abrupt decision to suspend talks with Canada, one of America’s largest trading partners, could further destabilize North American economic relations.
Analysis: Trade, Politics, and Power Messaging
The latest dispute reveals how trade policy and political symbolism intertwine in Washington’s decision-making. By invoking Reagan—a conservative icon—Trump reinforces his “America First” message while signaling to his base that he will defend tariffs at all costs.
At the same time, the move risks isolating Canada, which remains the United States’ top export market and a crucial ally in North American manufacturing and energy supply chains. If talks remain frozen, businesses dependent on cross-border trade may face heightened uncertainty and potential tariff volatility.
Global Reactions Expected
Although Ottawa has not yet issued a formal response, analysts expect financial markets and trade-sensitive industries to react quickly. Any escalation could impact automotive, agriculture, and steel sectors, where both countries are deeply interconnected.
Observers also note that the announcement may complicate ongoing U.S. negotiations with other allies, as it raises questions about the predictability of Washington’s trade commitments.
