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President Donald Trump has halted all trade negotiations with Canada, sharply escalating tensions between the two close economic partners. The move came after the government of Ontario released a television advertisement that used selectively edited remarks from former President Ronald Reagan criticizing tariffs. Trump called the ad “FAKE” and accused Canada of trying to interfere in a pending U.S. Supreme Court case on his tariff authority.
Trump issued the announcement on his Truth Social platform late Thursday. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” he wrote. The president also said, “CANADA CHEATED AND GOT CAUGHT!!!” and argued that tariffs had made the United States “wealthy, powerful, and nationally secure again.”
The Ronald Reagan Presidential Foundation and Institute stated that the advertisement “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” The organization added that Ontario did not have permission “to use and edit the remarks” and said it is reviewing legal options. Trump thanked the foundation for “exposing this FRAUD.”
Canadian Prime Minister Mark Carney did not immediately comment publicly, though relations have been strained for months as both sides prepared for a review of the U.S.-Mexico-Canada Agreement. Carney recently said Canada is working to expand exports outside the U.S. to reduce its vulnerability to American tariff policies. More than three-quarters of Canadian exports go to the U.S., with billions in goods crossing the border each day.
The situation also ties directly to a case scheduled before the Supreme Court on November 5. Justices will hear arguments about the legality of Trump’s broad tariff measures. Lower courts have ruled he exceeded his authority under a law traditionally used for economic sanctions against foreign adversaries. Trump has hinted he may attend the hearing personally due to what he calls the case’s significance for “defending American jobs.”
Why the RV Industry Is Paying Attention
The RV industry relies heavily on smooth trade with Canada. Most RVs are assembled in the United States, but many of their parts originate in Canada, Mexico, and China. Imported items include chassis components, appliances, electrical systems, and metal materials. If tariffs raise the cost of those parts, RV prices are likely to rise as manufacturers pass higher expenses along to consumers.
There is also the matter of Canadian RV makers. Well-known brands such as Northern Lite, Pleasure-Way, and Leisure Travel Vans build their models in Canada. Any increase in tariffs could mean higher sticker prices for American buyers of those vehicles. The reverse also holds true. If Canada retaliates further, U.S. manufacturers shipping to Canadian dealers could see declining demand.
Industry observers have previously warned that a prolonged tariff fight may contribute to job losses, production slowdowns, and reduced inventories. The RV market often reacts quickly to economic uncertainty. Higher household costs or hesitation about future pricing can cause buyers to delay large purchases like motorhomes and towables.
Those pressures come at a time when the RV industry is still working to regain its footing after post-pandemic fluctuations. Manufacturers and dealers have just begun stabilizing production schedules. Tariff disputes add another challenge, one that businesses cannot easily predict or control.
What Comes Next
Talks between the U.S. and Canada were already tense. Trump’s decision to terminate discussions removes a key avenue for compromise, and both sides now face uncertainty on trade rules heading into next year. The Supreme Court ruling may shape tariff authority for many years. Meanwhile, companies and workers on both sides of the border wait to see how deep the economic effects will run.
Source reporting:
Fox Business: https://www.foxbusiness.com/politics/trump-ends-canada-trade-talks-over-fake-ronald-reagan-tariff-ad-egregious
USA Today: https://www.usatoday.com/story/news/politics/2025/10/23/donald-trump-canada-trade-talks-tariffs-ronald-reagan-advertisement/86868307007/
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