Washington, Oct 24 (AP) – President Donald Trump announced late Thursday the termination of “all trade negotiations” with Canada, citing a television advertisement that he claimed misrepresented facts regarding US tariffs. He described the ad as “egregious behaviour” aimed at influencing US court decisions.

The announcement followed Canadian Prime Minister Mark Carney’s statement about his intention to double Canada’s exports to countries outside the US due to the threats posed by Trump’s tariffs. Trump’s abrupt decision to end negotiations is likely to escalate the ongoing trade tensions between the two nations.

In his social media post, Trump stated, “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs.” He further claimed that the ad, which cost $75,000, was intended to interfere with US Supreme Court decisions. Trump emphasized the importance of tariffs to US national security and the economy, declaring, “Based on their egregious behaviour, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”

Carney’s office did not immediately respond to requests for comment, as the Prime Minister was scheduled to leave for a summit in Asia on Friday morning, while Trump was set to depart the same evening.

Earlier on Thursday, the Ronald Reagan Presidential Foundation and Institute criticized the Ontario government for creating an ad that “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987” and noted that Ontario did not obtain permission to use or edit the remarks. The foundation is currently reviewing legal options regarding the matter and has invited the public to view the unedited video of Reagan’s address.

Carney had previously met with Trump to discuss easing trade tensions as the US, Canada, and Mexico prepare for a review of the US-Mexico-Canada Agreement, a trade deal Trump negotiated during his first term but has since criticized.

Over 75% of Canadian exports are directed to the US, with nearly $3.6 billion Canadian (US$2.7 billion) worth of goods and services crossing the border daily. Trump remarked earlier in the week that he had seen the controversial ad and interpreted it as evidence that his tariffs were effective.

Ontario Premier Doug Ford shared a link to the ad on X last week, promoting the campaign against American tariffs on Canada. He stated, “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 did not respond to requests for comment on Thursday night. Ford previously attracted Trump’s attention with an electricity surcharge to US states, which resulted in Trump doubling steel and aluminum tariffs.

Trump has implemented significant tariffs on various Canadian goods, prompting Canada to impose retaliatory levies on certain US products in April, while allowing exemptions for some automakers through remission quotas. The tariffs have particularly impacted Canada’s auto sector, primarily based in Ontario, with Stellantis announcing plans to relocate a production line from Ontario to Illinois.