President Trump announced on Oct. 24, 2025, that he was terminating trade talks with Canada in response to a provincial advertisement. He said the spot, run by Ontario's government, criticized his tariff policy. The next day he announced an additional 10% tariff hike on Canadian goods.

The Ontario ad used edited clips of RRRonald Reagan warning about the economic harms of tariffs. The Ronald Reagan Presidential Foundation said the spot misrepresented Reagan and said it was reviewing legal options. Ontario Premier DFDoug Ford initially promoted the ad and then agreed to pause its run days later.

Canada's federal trade minister, Dominic LeBlanc, said on Oct. 25 that Canada will continue to pursue constructive discussions with the United States. He emphasized that international trade talks are the federal government's responsibility and said Ottawa stands ready to engage directly. Canadian officials urged diplomacy despite the new threats.

The new tariff hike adds to tariffs the president imposed earlier in 2025. Canadian officials and business groups warned the escalation could disrupt integrated supply chains and raise costs for consumers. The dispute has sharply increased tensions between the United States and a major North American trading partner.