Canada continues to prepare for serious, substantive talks on trade with the US. Or rather, they’re waiting for the Americans to get their act together, particularly with tensions flaring over recently-instituted tariffs. The U.S. retaliated by putting a 35% tax on all Canadian products. Plenty of other items are still exempt due to a free trade agreement.
Additional sector-specific tariffs have further exacerbated the morass. Metals need to get prepared for a staggering 50% levy, whereas autos’ imports are taxed with a 25% levy. These tariffs have especially hurt Ontario, which is the birthplace of many of Canada’s automobile manufacturing industries.
Since his election earlier this year, Prime Minister Carney has been working hard to find a solution to relax these tariffs. No wonder the stakes are high for this key pillar of Canada’s economy. With nearly three-quarters of its exports headed south, Canada is particularly susceptible to the whims of US-Canada trade disputes.
To address these challenges, the Ontario government launched an advertisement. In the past, they even highlighted terrible quotes from former US President Ronald Reagan. The advert featured audio from a 1987 national radio address in which Reagan made the case against tariffs, claiming they “hurt every American.” This initiative aimed “to initiate a conversation about the kind of economy that Americans want to build,” according to Doug Ford, Ontario’s Premier. The ad ran on all the major US networks, even airing during the championship games of the Major League Baseball World Series.
The ad purchase provoked criticism from the Trump administration, which called it “FAKE” and “egregious.” In return, the Ronald Reagan Foundation condemned the advertisement for employing “politically selective” audio and footage of Reagan’s speeches. In response to such ire, Trump cancelled bilateral trade negotiations with Canada, pouring further salt on the wound and further straining this complex relationship.
Despite the backlash, Carney announced that Canada would continue airing the advert on US networks over the weekend, underscoring its commitment to addressing trade issues directly with American audiences.