On Friday, Canadian Prime Minister Mark Carney stated that the nation is prepared to continue trade negotiations with the United States, which US President Donald Trump had suspended due to an anti-tariff advertisement released by the provincial government of Ontario.
Trump ended the negotiations on Thursday due to an advertisement featuring former US President Ronald Reagan, a Republican icon, claiming that tariffs lead to economic catastrophe and trade wars.
Trump referred to the advertisement as fake in a late-night social media post.
According to White House sources, the US president’s response was the result of the administration’s long-suppressed dissatisfaction with Canada’s approach to trade negotiations.
Since taking office as prime minister, Carney has made two visits to the White House to reach an agreement to reduce Trump’s import tariffs on steel, aluminium, and automobiles, which have harmed Canada’s economy.
Ontario Premier Doug Ford said he ordered the advertisement to continue showing during the weekend’s baseball World Series games between the Toronto Blue Jays and Los Angeles Dodgers to reach a larger US audience.
Ford, who has already argued with Trump administration officials over tariffs, said, “In speaking with Prime Minister Carney, Ontario will pause its U.S. advertising campaign effective Monday so that trade talks can resume.”
Meanwhile, Carney said, “My colleagues have been working with their American colleagues on detailed constructive negotiations, discussions on specific sectors.”
Carney said this before leaving Ottawa for his first official trip to Asia, where he hopes to diversify economic ties outside of the US.
Most of Canada’s retaliatory tariffs on U.S. imports imposed by his predecessor had been lifted by Carney, but White House adviser Kevin Hassett claimed that Trump was dissatisfied with Canada and that trade negotiations had not been proceeding well.
“I think the frustration has built up over time. The Canadians have been very difficult to negotiate with,” remarked Hassett, who is the director of the National Economic Council. He was speaking to reports at the White House. Asked for specifics, Hassett cited a “lack of flexibility.”
The selective editing of Reagan’s remark was referred to by White House spokesperson Kush Desai as “the latest example of how Canadian officials would rather play games than engage with the (Trump) administration.”
“Further talks are a futile effort if Canada can’t be serious,” he added.
Canada drastically cut tariff-free import limits for General Motors and Stellantis earlier on Thursday, citing their choices to restrict domestic manufacturing.
Businesses and economists are alarmed by Trump’s trade war and his frequent warnings to impose additional taxes, which has raised US tariffs to their highest levels since the 1930s.
The 2020 continental free-trade agreement between the US, Canada, and Mexico is scheduled to be reviewed next year.
Carney acknowledged that there has been a significant shift in US trade policy.
“A lot of progress has been made, and we stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions, because it will be for the benefit of workers in the United States, workers in Canada and families in both of our countries.”