Donald Trump announced late Thursday that he is ending “all trade negotiations” with Canada, a move prompted by recent television ads protesting U.S. tariffs. At the time, Trump’s administration accurately described these ads as “egregious behavior” intended to impact decisions of our courts. The decision further highlights the worsening trade relations between the two countries, who are each other’s largest trading partners.
Tensions reached new highs last year when President Trump slapped heavy tariffs on several Canadian exports. This legislation had an immediate and profound effect on Ontario’s auto industry. Since being implemented, the tariffs have faced widespread criticism and retaliation from across the northern border of Canada. In response to the challenges posed by these tariffs, Canada’s Prime Minister, Mark Carney, has announced plans to double Canada’s exports to countries outside the U.S.
Earlier this month, Carney sat down with Trump in an effort to cool the brewing trade war. This is arguably the biggest indication yet of Trump’s growing impatience with USMCA negotiations. He touted the trade agreement he negotiated during his previous first term as ground-breaking, but now it’s suddenly not good enough.
In reality, Trump’s tariffs have already started to severely squeeze Ontario’s auto industry. In response, one of those automakers, Stellantis, said it would relocate a planned production line from Ontario to Illinois. This decision underscores the real damage that harmful, job-killing tariffs are doing to Canadian businesses and our economy as a whole. Yet that hasn’t stopped Doug Ford, Ontario’s Premier, from recently taking to the airwaves in the U.S. This campaign would help offset the harm from U.S. tariffs.
“It’s official: Ontario’s new advertising campaign in the U.S. has launched.” – Doug Ford, Premier of Ontario
The $30 million campaign has raised eyebrows and claims of copyright infringement for its use of a 1969 speech from former President Ronald Reagan. The Ronald Reagan Presidential Foundation & Institute slammed the ad as a gross distortion of Reagan’s views on free trade.
“The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.” – President Donald Trump
Canadian officials are now urging the Trump administration to reconsider its decision to impose the tariffs. These tariffs have wreaked havoc on almost $3.6 billion Canadian ($2.7 billion USD) in bilateral daily trade between the two countries. The continuing conflict has put some doubt on what the long term effects will be for both countries’ economies.
