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Canada’s “Reagan Ad” Triggers Trade Talk Collapse as Trump Cites Misrepresentation
President Donald Trump abruptly withdrew from trade negotiations with Canada on Thursday evening, citing his anger over what he called a “fake” television advertisement from Ontario’s provincial government. The controversial ad features audio excerpts from former President Ronald Reagan criticizing tariffs, which Trump has embraced as a cornerstone of his economic policy.
The advertisement, which has sparked diplomatic tension between the two neighboring countries, includes Reagan’s voice from an April 25, 1987 radio address stating: “Over the long run such trade barriers hurt every American worker and consumer.”
Trump took to Truth Social on Friday to express his outrage, writing in all caps: “CANADA CHEATED AND GOT CAUGHT!!! They fraudulently took a big buy ad saying that Ronald Reagan did not like Tariffs, when actually he LOVED TARIFFS FOR OUR COUNTRY, AND ITS NATIONAL SECURITY.”
Adding to the controversy, the Ronald Reagan Presidential Foundation and Institute criticized the advertisement on X (formerly Twitter), claiming it “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.”
While Trump characterized the advertisement as “fake,” Reagan’s words were indeed authentic, though presented without full context. Reagan delivered the address one week after imposing tariffs on Japanese semiconductors and was attempting to explain what appeared to be a contradiction to his free-trade reputation.
Historical records indicate Reagan was not generally supportive of tariffs. Throughout his presidency, he frequently criticized government interventions in free commerce, including protectionist measures. In the same 1987 radio address partially quoted in the ad, Reagan warned: “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars.”
He continued by explaining the potential consequences: “The result is more and more tariffs, higher and higher trade barriers, and less and less competition. So, soon, because of the prices made artificially high by tariffs that subsidize inefficiency and poor management, people stop buying. Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs.”
However, Reagan’s actual trade policies were more nuanced than his rhetoric suggested. Beyond the semiconductor tariffs, he imposed levies on Japanese motorcycles to protect Harley-Davidson and pressured Japanese automakers into accepting “voluntary” export limitations to the United States, which ultimately encouraged them to establish manufacturing facilities across the American Midwest and South.
Robert Lighthizer, who served in the Reagan administration before becoming Trump’s top trade negotiator from 2017 to 2021, noted in his 2023 memoir that “President Reagan distinguished between free trade in theory and free trade in practice.”
This complexity led the libertarian Cato Institute to label Reagan as “the most protectionist president since Herbert Hoover” in 1988. Nevertheless, Reagan expressed reluctance about imposing trade barriers, describing tariffs as “steps that I am loath to take.”
In stark contrast, President Trump has enthusiastically embraced tariffs as beneficial economic tools that can protect American industry, repatriate manufacturing jobs, and generate revenue for the Treasury. Since returning to office in January, Trump has implemented double-digit tariffs on imports from nearly every country worldwide, with specific focus on automobiles, steel, and pharmaceuticals.
According to Yale University’s Budget Lab, the average effective U.S. tariff rate has surged from approximately 2.5% at the beginning of 2025 to 18% currently—the highest level since 1934.
Trump’s aggressive tariff strategy, which has earned him the self-proclaimed title of “Tariff Man,” faces legal challenges from businesses and states arguing he has exceeded his constitutional authority. While the Constitution explicitly grants Congress the power to levy taxes, including tariffs, lawmakers have gradually delegated significant trade policy authority to the executive branch over time. The Supreme Court is scheduled to hear arguments on this matter early next month.
In his criticism of the Canadian advertisement, Trump claimed it was intended “to interfere with the decision of the U.S. Supreme Court, and other courts,” further escalating the diplomatic tension between the traditionally close allies.
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9 Comments
I appreciate the Reagan Foundation calling out what they see as a misrepresentation in the ad. It’s crucial that historical figures’ views are portrayed accurately, even in the context of modern policy debates. Hopefully this can lead to a more productive discussion around tariffs and their impacts.
This seems like an unfortunate case of political posturing and point-scoring rather than a sincere effort to have a constructive dialogue. Fact-checking and good-faith discussions should be the priority here, not accusations of dishonesty. Clear and consistent trade policies are important for businesses and consumers alike.
It’s disappointing to see political rhetoric overshadowing the actual facts and history around Reagan’s views on tariffs. As someone who follows these issues, I hope the true record can be clarified so the public has an accurate understanding of the former president’s positions.
As someone interested in commodity markets, I’m curious to see how this trade dispute could impact the mining and energy sectors, given the importance of cross-border supply chains. Transparency around tariff policies is important for businesses to plan effectively.
Absolutely, the implications for commodity producers and consumers are worth watching closely. Stability and predictability in trade policies are key for companies to make sound investment decisions. Hopefully this can be resolved without major disruptions.
It’s concerning to see a diplomatic dispute erupt over a political ad, even if there are legitimate concerns about the accuracy of its portrayal. Strong trade relationships are important, especially between close neighbors like the US and Canada. Hopefully this can be resolved through open and honest dialogue.
You make a good point. Maintaining productive trade ties should be the priority here, not political posturing. Fact-checking the ad’s claims and finding common ground will be crucial to moving forward constructively.
This is an interesting dispute over tariff policy and how it’s portrayed in political ads. It’s important to get the facts right and not misrepresent historical stances. I wonder what the full context was around Reagan’s comments on tariffs.
Absolutely, context is key when citing historical figures. The Reagan Foundation’s criticism suggests the ad may have taken his words out of context. It will be important for all sides to provide a fair and accurate representation of the facts.