Key takeaways:

• Ontario ran a bold ad featuring Ronald Reagan that sparred with President Trump.
• The ad led Trump to halt important trade talks with Canada.
• Both countries have since slapped each other with new tariffs.
• The Reagan Foundation is now reviewing legal steps over the ad.
• The dispute affects steel, aluminum, lumber and auto industries.

Canada’s Ad Stops Trade Talks in Its Tracks

A single ad pushed trade talks into a freeze. On Monday, Ontario Premier Doug Ford proudly praised his latest campaign. He called it “the best ad I ever ran.” The ad used a clip of former President Ronald Reagan warning that tariffs can boomerang. It struck a nerve with President Donald Trump. Soon after, the president paused key trade talks and threatened higher import fees.

Background on the World Series Ad

During a World Series game, Ontario’s new video cut to a 1987 Reagan speech. In it, Reagan said tariffs often backfire. The clip made a clear point: taxes on imports can hurt both sides. Ford’s team edited the old footage to apply directly to today’s dispute. In turn, it aimed to show Canadians that tariffs can hurt jobs and prices at home. Unexpectedly, the message also reached millions of Americans.

Ford’s Reaction to Trump’s Anger

“I knew it would work, and it did,” Ford said with a grin. He celebrated that the ad forced Trump to react. Ford added, “You know why President Trump is so upset right now? It was because it was effective.” Rather than back down, Ford praised the move as smart political theatre. He saw it as proof that Canadian leaders can fight back in trade talks.

Trump’s Response and Trade Talks Fallout

In response, Trump announced he would end all trade talks with Canada. On his social media platform, he called the ad “fake.” He claimed Canada cut the video to interfere with U.S. court decisions. He then threatened a 10 percent increase in tariffs on Canadian goods. That move could hit steel, aluminum, lumber, and cars. At this point, trade talks stalled completely.

Since then, both sides have traded more tariff threats. Canadian officials hit back with duties on U.S. goods. They targeted products like maple syrup and orange juice. Meanwhile, Trump’s team eyed higher levies on Canadian planes and dairy. The trade war grew more intense day by day. Workers on both sides worry about job cuts and higher prices.

Tariffs Exchanged Across Key Sectors

Several sectors now face new taxes. Steel and aluminum stand at the center of this fight. Canada supplies huge amounts of metal to U.S. plants. When the U.S. raised tariffs earlier, Canada hit back immediately. Lumber producers felt the sting next. They feared that Canada might tax wood imports by 15 percent. Automakers also worry that car parts could see new fees.

Moreover, farmers on both sides feel uneasy. Dairy and poultry farmers fear supply rules might tighten. Those rules could push prices up on everyday groceries. At the same time, U.S. orchards looked to Canada to buy oranges and apples. They now face higher costs, which could shrink their markets.

Reagan Foundation’s Legal Review

After the ad went live, the Ronald Reagan Presidential Foundation spoke up. It said Ontario used Reagan’s 1987 speech without permission. The foundation added that the clip seemed “selectively edited and misleading.” Now, the foundation is reviewing its legal options. It might sue to stop Ontario from running the ad again. For now, the ad remains online and in rotation.

In its statement, the foundation said it respects free speech. However, it also pointed out that edits can change a speech’s original meaning. This dispute adds another layer to an already tense trade fight. It shows how political ads can trigger serious legal trouble.

Impact on Consumers and Businesses

Consumers on both sides already feel the effects. In Canada, some steel mills have delayed projects. They hesitate to invest when fees can spike suddenly. Lumber yards fear sudden price jumps. Homebuilders say material costs rose by as much as 20 percent. That has driven up the price of new houses.

American businesses also face higher bills. Small manufacturers that rely on aluminum cans worry about costs. Craft breweries in Michigan and Wisconsin fear can prices will soar. They warn that higher prices could force them to cut staff or close.

Furthermore, auto plants near the border have paused expansion plans. They fear new tariffs on car parts could upend tight profit margins. Some worry they might shift production away from North America. Trade talks once aimed to update rules and boost growth. Now, those plans live on hold.

Inside the Politics of the Feud

Politics fuels much of this clash. Prime Minister Trudeau’s team wants to protect Canadian jobs. At the same time, Trump’s team insists on “America First” policies. Both sides use strong language to show resolve. For example, Trump said tariffs are “very important to national security.” He claims trade talks with Canada were unfair.

Meanwhile, Ford’s government had been under pressure at home. He needed a strong message to unite voters. The ad served that purpose. It also sent a signal to Washington: Canada won’t bow to threats.

What’s Next for Trade Talks

For now, the future of trade talks looks cloudy. Both governments could step back and restart negotiations. Or they may keep trading blows. Economic experts say a full trade war could harm both economies deeply. They point out that Canada and the U.S. are top trading partners. Canada sells more goods to the U.S. than any other country except Mexico.

If talks resume, officials might aim to limit tariffs. They could agree on new rules for steel, cars, and dairy. They may also update how they handle online trade and intellectual property. Yet, trust needs rebuilding first. The ad episode shook confidence on both sides. Until leaders mend fences, trade talks will stay on ice.

Potential Paths Forward

• High-level meeting: Leaders could meet face to face to break the ice.
• Trade mediator: They might hire a neutral mediator to restart talks.
• Phased rollbacks: Both sides could agree to remove some tariffs first.
• Public pressure: Business groups could push their governments to find compromise.

Why Trade Talks Matter

Trade talks shape the flow of goods and jobs. They set the rules for how much tax a country charges on imports. Lower tariffs often mean cheaper cars, appliances, and food. That helps families manage their budgets. At the same time, fair rules protect local industries. For example, steel factories need some protection from cheap imports.

Without clear agreements, companies face sudden fees. That can slow down production and cost jobs. In addition, unstable trade policies scare away foreign investors. They look for stable markets before they build factories or hire workers.

Given this, trade talks serve as a backbone for North American business. They keep supply chains humming and prices stable. When talks stall, everyone worries.

Looking Ahead

In the weeks to come, watch key signs:
1. Official talks: Are talks rescheduled soon?
2. Tariff changes: Do either side lower or raise fees?
3. Legal moves: Does the Reagan Foundation sue over the ad?
4. Political signals: Do Ford or Trump soften their tone?

The answers will show if the feud cools down or intensifies. For now, the world watches as trade talks remain on pause.

FAQs

How did the Reagan clip trigger a trade standoff?

Ontario used Reagan’s words on tariffs in an ad. Trump saw it as a political attack and halted trade talks.

What industries feel the fallout most?

Steel, aluminum, lumber and auto sectors are hit hardest by new tariffs.

Can Canada and the US still agree on trade?

Yes, both sides could resume talks. They might remove some tariffs first and build trust.

What role does the Reagan Foundation play now?

It’s reviewing legal steps against Ontario’s use of Reagan’s speech in the ad.