In Washington, President Donald Trump announced late Thursday that he was halting “all trade negotiations” with Canada. This decision was triggered by a television advertisement opposing U.S. tariffs, which Trump claimed was misleading and constituted “egregious behavior” intended to affect U.S. judicial outcomes.

Trump’s declaration on his social media platform came in the wake of Carney’s strategy to diversify Canadian exports due to the looming threat of U.S. tariffs. This abrupt cessation of negotiations may further escalate the trade friction that has been simmering between the neighboring nations for several months.

Trump commented, “The Ronald Reagan Foundation has revealed that Canada deceitfully used an advertisement, labeled as FAKE, featuring Ronald Reagan speaking unfavorably about tariffs.”

“The advertisement cost was $75,000, and its sole purpose was to meddle in the decisions of the U.S. Supreme Court and other courts,” Trump elaborated on his social media platform. “TARIFFS ARE CRUCIAL TO THE NATIONAL SECURITY AND ECONOMY OF THE U.S.A. Due to their egregious conduct, ALL TRADE NEGOTIATIONS WITH CANADA ARE NOW TERMINATED.”

Carney’s office didn’t immediately respond to a request for comment. The prime minister was set to leave Friday morning for a summit in Asia, while Trump is set to do the same Friday evening.

Earlier Thursday night, the Ronald Reagan Presidential Foundation and Institute posted on X that an ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks.”

The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.

Carney met with Trump earlier this month to try to ease trade tensions, as the two countries and Mexico prepare for a review of the U.S.-Mexico-Canada Agreement — a trade deal Trump negotiated in his first term, but has since soured on.

More than three-quarters of Canadian exports go to the U.S., and nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services cross the border daily.

Trump said earlier this week that he had seen the ad on television and said that it showed that his tariffs were having an impact.

“I saw an ad last night from Canada. If I was Canada, I’d take that same ad also,” he said then.

In his own post on X last week, Doug Ford, the premier of Ontario, posted a link to the ad and the message: “It’s official: Ontario’s new advertising campaign in the U.S. has launched.”

He continued, “Using every tool we have, we’ll never stop making the case against American tariffs on Canada. The way to prosperity is by working together.”

A spokesperson for Ford didn’t immediately respond to a request for comment Thursday night. But Ford previously got Trump’s attention with an electricity surcharge to U.S. states. Trump responded by doubling steel and aluminum tariffs.

The president has moved to impose steep U.S. tariffs on many goods from Canada. In April, Canada’s government imposed retaliatory levies on certain U.S. goods — but it carved out exemptions for some automakers to bring specific numbers of vehicles into the country, known as remission quotas.

Trump’s tariffs have especially hurt Canada’s auto sector, much of which is based in Ontario. This month, Stellantis said it would move a production line from Ontario to Illinois

Associated Press Writer Rob Gillies in Toronto, Ontario, contributed to this report.

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