Trade talks between the US and Canada have been disrupted after President Donald Trump suspended discussions between the two countries in response to an advertising campaign from the province of Ontario.
The advert, which was aired earlier this month and used extracts of a 1987 speech by former US President Ronald Reagan to criticise tariffs, sparked a response from a wide range of stakeholders, including Trump.
In addition to halting trade talks on 23 October, the President subsequently announced – via a post on his Truth Social platform on 25 October – that an additional 10% tariff rate would be added to imports from Canada. For its part, the Ronald Reagan Presidential Foundation and Institute says the ad “misrepresents” the address made by Reagan.
Prior to the advert, the US and Canada had been quietly working towards an agreement that would cover key aspects of their trading relationship, including steel, aluminium and energy imports.
While trade talks between the US and Canada have been paused, the process required to implement the additional 10% tariff rate is not as straightforward. A new executive order would be necessary to modify the current rate imposed on Canadian products, and would have to detail the legal basis for making such a change.
With President Trump currently in Asia – he is due to meet Chinese President Xi Jinping in South Korea on 30 October – an immediate meeting with Canadian Prime Minister Mark Carney is not envisaged. Similarly, a new executive order on the proposed tariff change is also not expected any time soon.