Written by The Banking Post
Prime Minister Mark Carney said Canada is ready to resume trade negotiations with the United States after President Donald Trump abruptly suspended talks over a controversial advertisement released by Ontario’s provincial government.
Trump halted the discussions on Thursday, claiming the video — which featured audio clips of former US President Ronald Reagan warning against tariffs — was “fraudulent.” The ad used selective excerpts from a 1987 Reagan address criticizing protectionism, though it omitted his justification for certain Japan-specific tariffs.
The Ronald Reagan Presidential Foundation later said the ad was misleading and that Ontario had not obtained permission to use or edit Reagan’s remarks. Ontario Premier Doug Ford admitted the ad had “caught Trump’s attention,” adding that he had long urged Ottawa to take a tougher line with Washington.
Carney, however, struck a conciliatory tone. “My colleagues have been working with their American counterparts on constructive negotiations in specific sectors,” he said before leaving Ottawa for his first official visit to Asia. He added that Canada “stands ready to build on progress” once Washington is prepared to resume talks, emphasizing mutual benefits for workers and families in both countries.
Since taking office, Carney has visited the White House twice in efforts to secure lower US tariffs on steel, aluminum, and autos — duties imposed under Trump that have weighed heavily on Canada’s economy. Although Carney lifted most retaliatory tariffs placed by his predecessor, the White House signaled growing frustration with Canada’s stance.
Kevin Hassett, director of the National Economic Council, said negotiations had become strained due to a “lack of flexibility” from Ottawa. “The frustration has built up over time,” he told reporters.
In a separate post, Trump accused Canada of trying to influence the US Supreme Court ahead of hearings on the legality of his global tariff policies.
The dispute adds another layer of tension to already fragile North American trade relations. Earlier this week, Ottawa reduced tariff-free import quotas for General Motors and Stellantis in response to their downsizing of Canadian operations.
Trump’s trade war has pushed US tariffs to their highest levels since the 1930s, stoking fears among businesses and economists. The US, Canada, and Mexico are scheduled to review their 2020 continental free-trade agreement next year — a process now clouded by uncertainty.
