Kathmandu: U.S. President Donald Trump has announced the immediate suspension of all ongoing trade negotiations with Canada, accusing the country of fraudulently using former President Ronald Reagan’s words in an anti-tariff campaign.

In a post on his Truth Social account, Trump wrote, “Due to their serious and unfair behavior, all trade policies with Canada are now suspended.” He claimed that the Ronald Reagan Foundation had confirmed Canada’s use of “fake material” in a political advertisement that “falsely depicted Reagan’s statements in opposition to the tariffs.”

The move marks a sudden downturn in U.S.–Canada relations, just two weeks after Canadian Prime Minister Mark Carney visited the White House seeking relief from U.S. tariffs. At the time, Trump had praised Carney as a “world-class leader” and said discussions were “pleasing”, though no concrete agreements were reached.

The Ronald Reagan Foundation later confirmed on social media platform X that the Ontario provincial government had used “selected audio and video excerpts” from Reagan’s 1987 national radio address in a misleading way, and stated that it was “reviewing legal options.”

Trump accused Canada of trying to influence U.S. Supreme Court deliberations on tariffs through the ad campaign.

Despite the diplomatic strain, the two countries continue to trade under the U.S.–Mexico–Canada Agreement (USMCA), which keeps about 85 percent of cross-border trade duty-free. However, Trump’s ongoing global tariffs on steel, aluminum, and autos have already dealt a significant blow to Canada’s economy, leading to job losses and industry strain across multiple sectors.