Carney Reacts to Trump Cancelling Trade Talks

Prime Minister Mark Carney says Canada is ready to “pick up” trade discussions after U.S. President Donald Trump cancelled talks over a TV ad from the Ontario government.

“A lot of progress has been made, and we stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions,” said Carney in Ottawa on Oct. 24, as he was about to board his flight to Asia.

Carney said “detailed, constructive negotiations” had taken place with the Trump administration around the sectors of steel, aluminum, and energy. The metals industry has been hit particularly hard by Trump’s sectoral tariffs imposed on national security grounds.

Prior to Trump’s abrupt decision, momentum had appeared to be building in trade talks between the two countries following Carney’s visit to the White House on Oct. 7.

During the meeting, Trump had said that deals would be made, and that Canadians would “love us again.” Canada-U.S. Trade Minister Dominic LeBlanc said “substantial progress” had been made and that Carney and Trump had directed their teams to “quickly land deals” in the sectors of metals and energy.

Carney did not comment specifically on the TV advertisement from the Ontario government.

Ontario Premier Doug Ford on Oct. 24 said that following discussions with Carney, his province will pause the ad campaign as of Oct. 27, after it airs during the weekend’s World Series games.

The Ontario government launched the $75 million TV ad campaign using footage and audio from a radio address from then-U.S. President Ronald Reagan in which he extolls the values of free trade. The ad is being broadcasted in the United States to make a case for free trade between Canada and the United States.

Ford had said one purpose of the ad was to get “Reagan Republicans” to fight with “MAGA Republicans,” in reference to Trump’s Make America Great Again movement.

Trump on Oct. 23 said he was cancelling trade talks with Canada over the ad, which he called “fake,” saying the campaign was meant to interfere with the work of the U.S. Supreme Court. Some of Trump’s tariffs have been challenged in court and the legal battle has made its way to the highest tribunal.

Trump’s message on Truth Social also carried a statement from the Ronald Reagan Foundation saying the Ontario ad had selectively used audio and video of the former president and that it “misrepresents the Presidential Radio Address.”

Reagan’s radio address of April 25, 1987, did praise the value of free trade, but started with announcing the imposition of tariffs on Japan ahead of the visit of its prime minister.

“As perhaps you’ve heard, last week I placed new duties on some Japanese products in response to Japan’s inability to enforce their trade agreement with us on electronic devices called semiconductors,” Reagan said.

Reagan also mentioned Canada in his address, saying he had conveyed his message promoting free trade to Canada’s leaders, which were the Progressive Conservatives of Brian Mulroney’s government at the time.

“It was warmly received there,” he said. “Indeed, throughout the world there’s a growing realization that the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition.”

Reagan and Mulroney had worked on a U.S.-Canada Free Trade Agreement, which materialized in 1988.

In a subsequent Truth Social post on Oct. 24, Trump said that Reagan “loved tariffs for our country and its national security” and accused Canada of trying to “illegally” influence the Supreme Court on the tariff case. Trump also repeated his longstanding grievance that Canada imposes high tariffs on U.S. farmers, in reference to Canada’s supply management system, with tariff rate quotas for imports of dairy and poultry products.

Premier Ford reacted to the cancellation of trade talks with a social media post of his own, saying that Canada and the United States are “friends, neighbours and allies,” and that Reagan “knew that we are stronger together.”

In announcing that his government will pause the ads, Ford said the intention was to “initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses.”

“We’ve achieved our goal, having reached U.S. audiences at the highest levels. I’ve directed my team to keep putting our message in front of Americans over the weekend so that we can air our commercial during the first two World Series games,” Ford said.

White House Economic Council Director Kevin Hassett commented on the cancellation of trade talks in an interview with Fox Business on Oct. 24.

“I think the president, probably more than anything, is frustrated with the progress that he’s making with Canada,” said Hassett. “I think there’s been frustration with the behaviour of the Canadians, the demeanour of the Canadians, the positions of the Canadians, and so it’s probably a good time to take a break.”

It is not the first time Trump abruptly cancelled or puts trade talks on hold with Canada. During the summer Trump said he was ending negotiations because of Canada’s digital services tax (DST). Ottawa subsequently pledged to rescind the DST to restart the talks.