What's happened
On November 1, 2025, Canadian Prime Minister Mark Carney apologized privately to US President Donald Trump for an Ontario government ad featuring Ronald Reagan's 1987 speech criticizing tariffs. The ad angered Trump, who halted US-Canada trade talks and imposed a 10% tariff increase. Ontario Premier Doug Ford initially defended the ad but later paused it to ease tensions. The dispute highlights ongoing trade frictions amid tariff hikes and efforts to diversify Canadian exports.
What's behind the headline?
Political and Economic Stakes
The apology by Prime Minister Mark Carney signals a strategic pivot from confrontation to diplomacy amid escalating trade tensions with the US. While Ontario's ad aimed to spotlight the economic harm of tariffs using Reagan's legacy, it inadvertently intensified a diplomatic crisis, leading to Trump's tariff hike and suspension of trade talks.
Divergent Approaches Within Canada
Ontario Premier Doug Ford's populist, aggressive stance contrasts with Carney's federal-level conciliatory approach. Ford's ad campaign, designed to sway American public opinion, succeeded in drawing attention but risked undermining broader Canadian trade interests.
Impact on Trade and Diplomacy
The US tariffs, some at 35-50%, have already pressured Canadian industries, especially steel, aluminum, and automotive sectors. Carney's apology and willingness to resume talks aim to stabilize relations and prevent further economic damage.
Forecast and Consequences
Canada will likely continue diversifying trade partners, focusing on Asia and other markets to reduce US dependency. However, the US-Canada trade relationship remains critical, and diplomatic efforts will intensify to negotiate tariff relief. The episode underscores the fragility of trade diplomacy when domestic political messaging intersects with international negotiations.
Reader Relevance
For Canadian and US consumers and businesses, these developments affect prices, supply chains, and economic stability. The story illustrates how political messaging can escalate trade conflicts, impacting everyday economic realities.
What the papers say
Business Insider UK provides detailed coverage of the ad's content and the political fallout, quoting Carney's apology and Ford's defense of the ad as "the best ad that ever ran." They highlight Canadian efforts to diversify trade amid US tariffs. South China Morning Post and AP News confirm Carney's apology at the Asia-Pacific Economic Cooperation summit and Trump's reaction, emphasizing the ad's role in halting trade talks and tariff increases. The Independent and The Guardian focus on the ad's composition, Trump's accusations of fraud, and the Reagan Foundation's legal concerns. Al Jazeera and The New Arab provide context on the diplomatic exchanges and the broader impact of tariffs on Canada. The NY Post and Business Insider UK include Trump's social media posts accusing Canada of "fraud" and increasing tariffs. These sources collectively illustrate the escalating tensions, the interplay between provincial and federal Canadian politics, and the economic stakes involved.
How we got here
The dispute began when Ontario aired a US ad quoting Reagan's 1987 speech warning against tariffs, provoking Trump to end trade talks and raise tariffs by 10%. The Reagan Foundation criticized the ad as unauthorized and misleading. Ontario's Ford defended the ad's impact but paused it after discussions with PM Carney. Canada faces high US tariffs on steel, aluminum, and other goods, straining the US-Canada trade relationship.
Go deeper
- Why did Mark Carney apologize to Donald Trump?
- What was controversial about the Ontario ad featuring Ronald Reagan?
- How have US tariffs affected Canadian trade relations?
Common question
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Why are US and Canada trading tariffs over a Reagan ad?
The recent trade tensions between the US and Canada have been sparked by a controversial political ad featuring Reagan's speech. This has led to increased tariffs, diplomatic disputes, and questions about the impact on international relations. Below, we explore the key questions surrounding this complex situation, including what caused the trade row, how it affects US-Canada relations, and what the future might hold.
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Why is Canada upset about US tariffs?
The ongoing trade tensions between the US and Canada have escalated recently, with Canada expressing frustration over US tariffs and trade policies. These disputes are rooted in historical disagreements, economic strategies, and political symbolism, affecting both nations' economies and diplomatic relations. Curious about what triggered these tensions and how they might impact everyday life? Below, we answer some of the most common questions about the current US-Canada trade dispute.
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Why is Canada upset over US tariffs?
The trade tensions between Canada and the US have escalated recently, with Canada expressing frustration over US tariffs and trade policies. This dispute has roots in recent political actions, including controversial ads and tariff increases. Many are wondering what triggered these tensions, how they affect trade, and what the future holds for consumers and businesses on both sides. Below, we explore the key questions about this ongoing dispute and what it means for everyone involved.
More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Douglas Robert Ford is a Canadian businessman and politician serving as the 26th premier of Ontario since June 29, 2018. He represents the riding of Etobicoke North.
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Ronald Wilson Reagan was an American film actor and politician who served as the 40th president of the United States from 1981 to 1989.
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Mark Joseph Carney OC is an economist and banker who served as the Governor of the Bank of Canada from 2008 until 2013 and the Governor of the Bank of England from 2013 to 2020.
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Ontario is one of the thirteen provinces and territories of Canada. Located in Central Canada, it is Canada's most populous province, with 38.3 percent of the country's population, and is the second-largest province in total area.
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Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the Pacific and northward into the Arctic Ocean, covering 9.98 million square kilometres, making it the world's second-largest c
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The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
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Scott K. H. Bessent is an American hedge fund manager. He is the founder of Key Square Group, a global macro investment firm, and worked as a financier for George Soros.
Bessent has been a major fundraiser and donor for Donald Trump. He was an economic ad
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The Toronto Blue Jays are a Canadian professional baseball team based in Toronto, Ontario. The Blue Jays compete in Major League Baseball as a member club of the American League East division.