The decision follows a Canadian advertisement aired in the U.S. that criticized American tariffs and featured the voice of former President Ronald Reagan. Trump said the ad was “designed to influence our courts,” justifying the termination of talks.

The dispute traces back to June 2025, when Canada imposed a 3% digital services tax on revenues from large U.S. tech firms operating in Canada. Washington saw this as a “direct attack” on American businesses. Trump warned Canada it would face tariffs as a consequence.

The sudden end to negotiations has raised concerns about trade between the two longtime allies. Canada is one of America’s top trading partners, and the freeze could affect sectors ranging from technology to agriculture and manufacturing.

Canadian officials argued that the ad was fair commentary, while the Ronald Reagan Presidential Foundation said it misused the former president’s voice without permission.

In short, what began as a taxation dispute escalated into a broader trade standoff, amplified by media and messaging conflicts showing how political, economic, and cultural factors can collide quickly in international relations.