U.S. President Donald Trump announced the immediate suspension of all trade negotiations with Canada, citing a controversial advertisement aired in Canada featuring former President Ronald Reagan’s criticisms of tariffs.

Trump took to Truth Social to declare the decision, stating: “In response to Canada’s unacceptable behavior, all trade talks between the two countries are hereby cancelled.”

The dispute comes amid ongoing trade tensions. The Trump administration already imposes a 35% tariff on certain imported goods from Canada, while products covered under the US-Mexico-Canada Agreement (USMCA) remain exempt. Additionally, some sectors face extra levies, including a 50% tariff on metal products and 25% on automotive goods originating from Canada.

According to analysts, the advertisement, which reportedly manipulates Reagan’s 1987 remarks, has intensified political sensitivities. The Reagan Presidential Foundation criticized the ad, claiming unauthorized use of Reagan’s image and words, and indicated that legal action may follow.

Canadian officials, including Prime Minister Mark Carney, responded cautiously, emphasizing that Canada remains committed to defending its economic interests despite the suspension of talks.

Observers note that this development could complicate ongoing trade relations between the two neighbors and cast uncertainty over upcoming discussions related to USMCA updates scheduled for 2026. (ILKHA)