This is the video that fractured the US-Canada trade relationship in the USMCA.

The government of the Canadian province of Ontario has sparked a new diplomatic storm in North America after releasing a television video openly criticizing tariffs imposed by the United States.

The message, broadcast on US and Canadian channels, quotes former President Ronald Reagan to warn of the risks of protectionism, prompting President Donald Trump to announce the immediate end of all trade negotiations with Canada.

The ad, sponsored by the Ontario government, uses excerpts from a 1987 Reagan radio speech on foreign trade. In the video, the former president is heard saying, “High tariffs inevitably lead to retaliation by foreign countries … markets shrink, industries close, and millions of people lose their jobs.”

The message concludes with the phrase: "Prosperity is not achieved by building walls, but by tearing them down." Hours after its broadcast, Trump called the video "fraudulent " and accused Canada of trying to "illegally influence" the U.S. Supreme Court.

"Canada cheated and got caught!" the president wrote on social media, claiming that Reagan "loved tariffs for America's national security." The Ronald Reagan Foundation confirmed that the material was used without authorization and warned of possible legal action.

Since returning to the White House in 2025, Trump has revived a trade policy based on 25% tariffs on Canadian products and unilateral revisions to the USMCA. Canada responded with retaliatory measures, and bilateral relations became strained despite exemptions granted to goods that comply with the treaty's rules.

With negotiations breaking down following the Ontario video, analysts warn that the stability of the USMCA could be fractured, disrupting key supply chains and reigniting a trade war between two of the world's most integrated economies.