Trump Terminates Talks on Trade with Canada

Oct. 27, 2025
By: Pietro N. Bianchi

On October 25^th President Trump posted on social media that he is increasing tariffs on Canadian goods by 10%. The post came two days after Trump posted that “ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.” These posts were in response to an advertisement produced by the government of Ontario (a province of Canada), which ran during the World Series (which includes an Ontario team). The advertisement uses legitimate but edited together voice clips of Ronald Reagan from a 1987 radio address denouncing tariffs, including that “over the long run [tariffs] hurt every American worker and consumer.”

Trump stated the advertisement was devised to “interfere” with the upcoming U.S. Supreme Court case on the validity of the International Emergency Economic Powers Act (“IEEPA”) tariffs and that the advertisement was a “hostile act.” It is not clear how the use of President Reagan’s words are hostile, or whether there is any step Ontario can take to restart negotiations. Ontario has already said the ads have been pulled.

The United States is Canada’s top trading partner and Canada has persistently ranked among the United States’ top three trading partners. Automotive trade is one of the largest portions of that. Since retaking office, Trump has imposed Section 232 tariffs on automotives and automotive parts, imposed IEEPA tariffs on Canadian goods, and increased Section 232 tariffs on aluminum and steel. This has prompted Canada to prioritize trade talks with the U.S. Also of concern is the United States-Mexico-Canada (“USMCA”) free trade agreement, which provides reduced tariffs on a significant volume of trade and for some trade remedy exemptions. The USMCA is scheduled for review July 1, 2026. Whether for trade remedies or free trade agreements, it is clear that the Ontarian advertisement was created to influence the American public’s perception of tariffs.

Do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP about IEEPA tariffs, USMCA, or other trade remedies and free trade agreements.