Trump Canada Trade Ends: USMCA Review Threatened, Crypto Markets React

Could a $75 million advertisement spark a new trade war between the US and Canada? President Donald Trump has officially ended all trade talks with Canada.

Source: X (formerly Twitter)

This Trump Canada trade termination move affects $1.3 trillion in annual business and came after the US president accused the Canadian government of running a misleading ad featuring former President Ronald Reagan criticizing tariffs.

The Announcement

The president announced on Truth Social that all commercial talks with the nation are over. He said the Ontario government’s ad misrepresented Reagan’s 1987 remarks about tariffs . He claimed the ad was trying to influence an upcoming US Supreme Court decision on whether his global tariffs are legal.

This decision is a major step in the ongoing Trump Canada conflict. The US and Canada were discussing tariffs under the USMCA trade deal on steel, aluminum, and cars. With the next USMCA review in 2026, ending talks just 14 months before raises big questions for businesses and consumers.

The Controversial Advertisement

Ontario ran a one-minute ad using parts of Reagan’s old radio speech. In the ad, Reagan said high tariff can hurt American businesses, cause retaliation, and start tariff wars.

The president called the ad “fake” and said the government misused Reagan’s words without permission. The Reagan Foundation confirmed Ontario did not get approval and said it is considering legal action.

Ontario Premier Doug Ford defended the advertisement. He indicated that the province will continue to fight Trump tariffs on Canadian products . He also condemned the tariff on steel and autos, indicating that they were damaging Canadian workers and businesses.

Impact on US-Canada Busine

The United States has already imposed 50% tariffs on metals and 25% tariff on automobiles. Suspending negotiations raises the stakes for more longer business conflicts and imperils the $1.3 trillion yearly business between the two country. More than 75% of Canadian exports are destined for the US, so this is a high-stakes game for both nations.

Analysts comment that this may be an indication of a more hostile era of US-Canada relations and a possible "Trade War 2.0." The implications may extend to businesses and markets across the globe.

How Markets May Respond

Markets will likely respond to this Trump Canada Trade news. Steel, automotive, and related industry stocks may decline. Gold may appreciate as investors seek safer havens.

The crypto market may even witness more volatility. Trade tensions and global uncertainty usually lead investors to think of Bitcoin and other cryptocurrencies as alternatives. This indicates that these geopolitical disputes can influence both traditional and crypto markets.

Source: CoinMarketCap

Currently the crypto market is sitting at a market cap of $3.75 trillion with an increase of 1.47% in the last 24 hours, where Bitcoin is trading at $111,206.42, while Ethereum is trading at $3,974.49.

What Comes Next

The Canadian government has not officially responded to this announcement. The US Supreme Court decision on tariffs will be important for future negotiations. Businesses and investors are watching the situation closely for possible impacts on regular markets and crypto.

The United State's move shows how fragile international business agreements can be. With $1.3 trillion at stake, this could continue to create uncertainty for markets in the coming months.