What is the Reagan ad at the centre of collapsed US-Canada talks?

Talks between the United States and Canada for a trade deal have collapsed. And an advertisement featuring a former US president is to blame.

US President Donald Trump in recent months had expressed optimism that the two countries would be able to negotiate a trade deal. Trump was quoted as saying at the G7 Summit in June, “I think we have different concepts. I have a tariff concept. Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

However, now an irate US President has ‘terminated all negotiations’ with Canada.

But what do we know about the advertisement? Why is Trump so angry over its contents? Let’s take a closer look.

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What we know about the ad

The advertisement was put out by the Ontario government headed by Premier Doug Ford. It features former US president and Republican icon Ronald Reagan. It features a 1987 presidential speech Reagan delivered over the radio to America on free and fair trade. The advertisement, which has run during several high-profile events across America, clearly sparked the ire of Trump.

The one-minute advertisement, released last week, shows scenes across America including wide open plains, trains running, people working and spending time with their families, and the flag fluttering. It features a voiceover from Reagan, who was speaking from the presidential retreat of Camp David in 1987, defending free trade between nations and taking aim at tariffs.

"When someone says, 'Let's impose tariffs on foreign imports,' it looks like they’re doing the patriotic thing by protecting American products and jobs," Reagan says in the advertisement. “And sometimes for a short while it works – but only for a short time.”

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“…Over the long run such trade barriers hurt every American worker and consumer,” Reagan continues. “High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs.

“Throughout the world there’s a growing realisation that the way to prosperity for all nations is rejecting protectionist legislation and promoting fair and free competition,” Reagan adds. “America’s jobs and growth are at stake.”

However, the advertisement itself left out some key details and important context. For example, at the time Reagan gave the speech, the United States was at odds with Japan, headed up by Prime Minister Nakasone, over trade.

Ironically, Reagan himself had imposed 100 per cent tariffs on Japan and was making the speech as a way of explaining to the American public why he had departed from his previously held beliefs on tariffs.

Indeed, the advertisement comprises snippets from various parts of Reagan’s speech – and not always in order – that have been stitched together. It also left out the conclusion of the speech in which Reagan tells the public, “I’ll keep you informed on this dangerous legislation, because it’s just another form of protectionism and I may need your help to stop it.”

Trump has described the advertisement as ‘fraudulent’. “Canada cheated and got caught!!!” the furious president wrote on social media. Trump also incorrectly asserted that Reagan was pro-tariffs.

Why Trump is so angry

First, the advertisement is a full-throated cry against tariffs and protectionism from one of the Republicans’ favourite presidents. Many in the GOP, known as the ‘Reagan Republicans’, continue to see him as an unabashed hero and an inspiration – which likely gets under Trump’s skin.

Trump may perhaps be worried that the ad could remind much of his base of Reagan’s views on trade – which stood at the opposite end of his own – and influence at least some of his base to change their minds on the issue of tariffs.

The advertisement could also spur a fight between the corporatists and white-collar ‘Reagan Republicans’ and the MAGA base, many of them blue-collar, which Trump would like to avoid.

Second, Trump and his tariffs are set to come up before the US Supreme Court, some of the justices he has handpicked. Though the US Supreme Court has been showing a propensity to side with Trump at times even when legal precedent is not in his favour, he is clearly worried about it ruling against him.

For good reason. Under the US Constitution, it is Congress and not the president who has the power of the purse strings, including the ability to impose tariffs. Trump has claimed that he can do so in case of an emergency – an argument lower courts, even stacked by his own judges, have repeatedly rejected.

Trump has now gone back to citing his favourite ‘election interference’ claim against Canada – accusing Ontario of essentially trying to put its thumb on the scale ahead of the hearing in the Supreme Court. Trump pulled out the same argument ahead of the 2024 election when he accused CBS News of doing so in an interview with his opponent Kamala Harris.

Trump has received backing from the expected quarters.

The Ronald Reagan Presidential Foundation and Institute on Thursday wrote on X that the advertisement “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks.” It said it used “selective audio and video", and that it was considering its legal options. It encouraged people to watch the unedited speech online to get the appropriate context.

Ford remains unbothered

Ford, a conservative and the brother of the late Toronto Mayor Rob Ford, for his part has remained unmoved. Indeed, he even posted the link of the full speech on X.

“I heard that the president heard our ad. I’m sure he wasn’t too happy,” Ford said earlier this week. Ford said he came up with the idea for the ad himself and that the words came from the ‘best president’ America has ever seen.

“It’s very effective. It’s probably one of the best ads I’ve ever seen and it is coming from Ronald Reagan’s voice,” Ford said. He added that it was going to be broadcast all across America but particularly in Republican-ruled areas.

Ford previously said he wanted to “take Ronald Reagan’s words and blast it to the American people.”

Ford has frequently urged Carney to take a more aggressive approach with Trump. Carney has visited Trump in the White House twice since becoming Prime Minister in March. Carney met with Trump earlier this month to try to ease trade tensions, as the two countries and Mexico prepare for a review of the US-Mexico-Canada Agreement, a trade deal Trump negotiated in his first term but has since soured on.

With inputs from agencies