US President Donald Trump announced on Thursday that he is terminating all trade negotiations with Canada. This decision comes after a Canadian province launched an anti-tariff advertising campaign, which Trump claims misquoted former President Ronald Reagan on tariff policy.

According to Trump, the campaign, produced by the Canadian province of Ontario, was designed to interfere with the US Supreme Court’s upcoming ruling on his global tariffs. Trump expressed his outrage on his Truth Social network, stating that the ad was “fake” and that Canada’s actions were “egregious behavior.”

The advertisement in question featured a quote from Reagan’s 1987 radio address on trade, in which he warned against the potential consequences of high tariffs on foreign imports. However, the Ronald Reagan Foundation has disputed the ad’s accuracy, claiming that it used “selective audio and video” to misrepresent Reagan’s views.

The sudden termination of trade talks between the US and Canada has significant implications for the two countries’ economic relationship. The US has imposed stiff tariffs on Canadian steel, aluminum, and autos, which have had a devastating impact on Canadian businesses and workers. Despite this, the two countries continue to adhere to the existing North American trade deal, known as the USMCA, which ensures that roughly 85% of cross-border trade remains tariff-free.

Canadian Prime Minister Mark Carney had recently visited the White House to seek a relaxation of US tariffs, and Trump had described him as a “world-class leader.” However, the latest development has put a strain on their relationship, with Carney stating that the US has raised its tariffs to levels last seen during the Great Depression.

The trade dispute between the US and Canada is likely to have far-reaching consequences, including potential price increases for consumers and job losses. The two leaders are scheduled to attend regional summits in the coming days, including the ASEAN summit in Malaysia and the APEC Forum in South Korea. Despite the current tensions, Carney has expressed optimism about the prospects of a breakthrough in trade negotiations, particularly in the steel and aluminum sectors.