US President Donald Trump has said that he was immediately ending all trade talks with Canada, accusing it of misquoting former president Ronald Reagan in an advertising campaign against tariffs.
"Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED," Mr Trump said on his Truth Social network.
"The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs."
The latest extraordinary twist in relations between the North American neighbours comes just over two weeks after Canadian Prime Minister Mark Carney visited Mr Trump in the White House to seek a relaxation of stiff US tariffs.
The Ronald Reagan Foundation said on X that the government of the Canadian province of Ontario had used "selectively audio and video" from a radio address to the nation to the nation on trade by Mr Reagan in April 1987.
It said the ad "misrepresents" what the Republican had said in his address, adding that it was "reviewing its legal options in this matter".
Mr Trump said the ad was designed to "interfere with the decision of the US Supreme Court," which is due to rule on his sweeping global tariffs.
The sudden decision to end trade talks will come as a blow to Mr Carney, whom the US president described as a "world-class leader" when they met on 7 October, adding that the Canadian would be "very happy" with their discussion.
At the time, however, Mr Trump offered no immediate concessions on tariffs.
Roughly 85% of cross-border trade in both directions remains tariff-free as the United States and Canada continue to adhere to an existing North American trade deal called the USMCA.
But Mr Trump's global sectoral tariffs - particularly on steel, aluminium, and cars - have hit Canada hard, forcing job losses and squeezing businesses.
Mr Trump had imposed tariffs on Canadian steel, aluminium and autos earlier this year, prompting Canada to respond in kind.
The two sides have been in talks for weeks on a potential deal for the steel and aluminium sectors.
Next year, the US, Canada and Mexico are due to review their 2020 continental free-trade agreement.
