Toronto / Washington, D.C. — In a surprising diplomatic twist, Canadian Prime Minister Mark Carney apologized to U.S. President Donald Trump following a heated controversy over a Canadian advertisement criticizing tariffs. The ad, which used the voice of former U.S. President Ronald Reagan to oppose trade barriers, provoked an angry reaction from Trump — who swiftly announced an additional 10% tariff on Canadian goods.
#BREAKING: Canada’s PM Mark Carney says he APOLOGIZED to Trump over Ontario’s anti-tariff ad saying ‘it’s not something (he) would have done’
— Rapid Report (@RapidReport2025) November 1, 2025
‘President (Trump) was offended by the ad’ pic.twitter.com/LpbsRaS0Gr
Carney Apologizes — “President Trump Was Upset, and I Understand Why”
Speaking to journalists in Gyeongju, South Korea, on Saturday, Carney confirmed that he personally reached out to President Trump to apologize for the controversial advertisement.
“I have apologized to President Trump. He was understandably upset,” Carney said. “We will resume trade talks with Washington as soon as they are ready.”
The commercial in question was produced and aired by the provincial government of Ontario, Canada’s largest manufacturing hub. Its purpose was to criticize protectionist tariffs and advocate for open trade — but the ad’s use of Ronald Reagan’s 1980s speech fragments gave it a distinctly American flavor, triggering outrage in Washington.
Trump on PM Mark Carney: "He apologized for what they did with the commercial. It was a false commercial. It was the exact opposite. Ronald Reagan loved tariffs. They tried to make it look the other way”
— Republicans against Trump (@RpsAgainstTrump) October 31, 2025
(Ronald Reagan was a strong opponent of tariffs)pic.twitter.com/9e29XeOwaP
Trump’s Reaction: ‘What Carney Did Was Wrong’
Reacting to the apology, President Trump said on Saturday night,
“I like Carney, but what he did was wrong. He apologized because the ad was misleading.”
Trump claimed that former President Ronald Reagan actually supported certain tariffs when they served U.S. national interests, contradicting the anti-tariff message implied in the Canadian ad.
“They tried to twist Reagan’s words to make it look like he was against tariffs altogether — that’s false,” Trump asserted. “Trade talks will not restart anytime soon.”
The Controversial Advertisement: Broadcast During the World Series
The now-pulled advertisement was created under the authority of the Ontario provincial government and was first aired during the opening game of the World Series — a major baseball event watched by millions across North America.
Following Trump’s outburst, Ontario Premier Doug Ford stated that the province would withdraw the advertisement after the weekend. “We didn’t intend to offend anyone,” he said, emphasizing that the ad’s purpose was to highlight the economic impact of U.S. tariffs on Canadian industries.
Trump Doubles Down — Calls the Ad “Fake” and “Deceptive”
Within 24 hours of the broadcast, President Trump took to social media, accusing Canada of running a “fake and deceptive ad”.
He wrote, “Canada got caught red-handed, airing a fake ad using Ronald Reagan’s old speech about tariffs. Reagan believed in tariffs for national security and economic purposes, but Canada claimed he opposed them.”
Trump further added, “Canada should have pulled that ad immediately. Instead, they knowingly aired it during the World Series — that’s a fraud.”
The White House has yet to specify the legal authority under which the additional 10% tariff will be imposed, nor has it confirmed an exact implementation date. However, trade analysts expect that the tariffs could take effect within weeks, pending internal review.
How U.S. Tariffs Are Hurting Canada’s Economy
According to the Associated Press (AP), the escalating tariff measures are already hurting the Canadian economy. The country’s GDP growth has slowed, manufacturing exports are declining, and inflation remains stubbornly high due to higher import costs.
A report from J.P. Morgan estimates that these tariffs could reduce Canada’s GDP by 1.2% over the next five years, primarily through lost trade revenue and higher production costs.
Currently, over three-quarters of Canada’s exports go to the United States, accounting for roughly C$3.6 billion (US$2.7 billion) worth of goods and services crossing the border daily.
Under existing trade rules, the U.S. already imposes:
| Product Category | Current U.S. Tariff Rate | Proposed New Rate (Post-Dispute) |
|---|---|---|
| General Canadian imports | 35% | 45% |
| Steel and Aluminum | 50% | Unchanged |
| Agriculture & Dairy | 25% | 35% |
These increases make Canada one of the most heavily tariffed nations by the U.S., after India and Brazil.
Carney’s Diplomatic Balancing Act
For Prime Minister Mark Carney, who took office promising to stabilize trade relations and restore investor confidence, the incident marks an early diplomatic setback. However, his quick apology may have prevented the dispute from spiraling into a full-blown trade war.
Analysts say Carney’s approach reflects a “damage control” strategy aimed at preserving dialogue with Washington.
“Carney’s apology is an effort to de-escalate tensions,” said Richard Allen, a trade expert at the University of Toronto. “He knows that any extended tariff fight with the U.S. would hurt Canadian jobs, exports, and long-term economic growth.”
Why Reagan’s Speech Became the Center of Controversy
The disputed advertisement used snippets from a 1985 Ronald Reagan address, where he cautioned that excessive tariffs could hurt consumers and lead to retaliatory measures. The Ontario government’s communications team reportedly used those lines to promote free trade values — but critics in Washington argue the message was taken out of context.
Reagan’s full speech, archived by the Ronald Reagan Presidential Library, also included passages defending strategic tariffs for national defense industries — the very part omitted from the Canadian version.
That omission, according to Trump’s aides, “distorted Reagan’s legacy” and portrayed the United States as protectionist and unreasonable.
Trump’s Tariff Policy: A Return to Economic Nationalism
This dispute comes amid a broader shift in U.S. trade policy, which under Trump’s leadership has re-emphasized economic nationalism and “America First” trade principles.
Trump’s decision to raise tariffs on Canadian goods by another 10%, bringing total rates up to 45%, reflects that stance.
Trade experts warn that such measures could disrupt cross-border supply chains, particularly in the automotive, aluminum, and energy sectors, where Canada and the U.S. are deeply integrated.
“It’s not just about Canada — these tariffs ripple through global markets,” said economist Maria Chen from the London School of Economics. “They raise costs for American manufacturers too, and that could backfire politically.”
No Immediate Trade Talks Expected
Despite Carney’s apology, Trump made it clear that trade talks will not resume immediately. He told reporters aboard Air Force One,
“We’re not ready yet. We’ll see what happens later.”
Both leaders are expected to attend the upcoming ASEAN Summit in Malaysia, but Trump’s aides have confirmed there are no plans for a bilateral meeting.
Sources in Ottawa told the Globe and Mail that Canadian diplomats are quietly working behind the scenes to “cool tensions” and “reopen communication channels.”
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Economic and Political Fallout in Canada
Back home, opposition parties in Canada have criticized the Ontario government for producing the controversial ad without federal oversight.
“Who approved this reckless ad?” asked New Democratic Party (NDP) leader Jagmeet Singh. “It has cost Canadian workers more than a press conference ever could.”
The Canadian Chamber of Commerce also expressed concern, urging both governments to “focus on cooperation, not confrontation.”
Meanwhile, the Liberal government led by Carney has pledged to create a new Trade Response Task Force to assess the impact of the U.S. tariffs on Canadian industries, including steel, automotive, and agriculture.
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Global Reactions and Expert Opinions
The diplomatic fallout has drawn attention from across the world. European and Asian trade officials are watching closely, concerned that escalating U.S.–Canada tensions could set a precedent for other Western economies.
“Canada and the U.S. share one of the largest and most peaceful trading borders in the world,” said former WTO Director-General Pascal Lamy. “Any prolonged trade dispute between them sends a bad signal globally.”
In financial markets, the Canadian dollar fell 0.6% against the U.S. dollar, while Canadian manufacturing indices showed a decline in new export orders — a clear reflection of investor anxiety.
Conclusion: Carney Apologizes, but Trade Rift Persists
While Carney apologizes to ease tensions and rebuild goodwill with Washington, the path to restoring full trade cooperation remains uncertain.
Trump’s insistence that Reagan supported tariffs — and Canada’s portrayal of the opposite — underscores how political narratives can reshape economic diplomacy.
For now, the dispute serves as a reminder that even the closest allies can clash over interpretation, legacy, and national interest. As both nations prepare for the next round of global summits, the world watches whether this apology marks the beginning of reconciliation — or just another chapter in an ongoing trade rivalry.
