President Donald Trump has abruptly terminated trade negotiations with Canada, citing a provocative advert produced by the Ontario provincial government that criticised his administration’s tariffs on Canadian exports.

The minute-long commercial, aired last week, featured excerpts from a 1987 speech by former President Ronald Reagan, in which he warned that tariffs “hurt every American” and could ignite trade wars. Trump denounced the advert on social media as “FAKE” and “egregious,” declaring that trade discussions with Ottawa were “HEREBY TERMINATED.”

The Trump administration has imposed 35% tariffs on many Canadian imports, alongside sector-specific levies on automobiles, steel, and agricultural goods. Though certain exemptions remain under the U.S.-Mexico-Canada Agreement (USMCA), Ontario’s export-heavy economy has been hit particularly hard.

Ontario Premier Doug Ford, a vocal critic of the tariffs, launched a $75 million media campaign across U.S. networks aimed at highlighting the economic costs of the trade barriers. “Ontario will never stop making the case against American tariffs on Canada,” Ford said in defense of the ad.

The Ronald Reagan Presidential Foundation condemned the advert, accusing Ontario of misusing Reagan’s image and words without authorization. The foundation said the ad “selectively edited” Reagan’s remarks, stripping them of context, and announced it was considering legal action.

Trump seized on that criticism, alleging that the ad was part of an effort to influence an upcoming U.S. Supreme Court ruling on the legality of his tariffs — a case that could potentially compel Washington to refund billions in collected duties.

The suspension of trade talks marks the second breakdown in U.S.-Canada negotiations under Trump. A previous freeze came after Canada introduced a digital services tax targeting U.S. tech firms — a measure later withdrawn.

The tariffs have led to job losses and economic strain in Ontario, home to major automotive and manufacturing hubs, and have reignited debate over the future of cross-border trade relations.

Neither Canadian Prime Minister Mark Carney nor Premier Ford has yet formally responded to Trump’s latest decision. However, analysts warn the move risks deepening a trade rift between two of North America’s closest allies and could further disrupt supply chains across the region.

With the White House now withdrawing from talks and both sides trading political barbs, the prospects for renewed dialogue between Washington and Ottawa appear increasingly uncertain.