KUALA LUMPUR, MALAYSIA — Canadian Prime Minister Mark Carney announced on Monday that his government is prepared to resume crucial trade talks with the United States, even as the Trump administration escalated the trade dispute by imposing an additional 10 percent tariff on Canadian goods.
The announcement comes just days after U.S. President Donald Trump abruptly terminated all trade negotiations, citing a controversial anti-tariff advertising campaign from the Canadian province of Ontario that featured former President Ronald Reagan.
“We stand ready to sit down with the United States, myself with the president, my colleagues with their colleagues, when the U.S. is ready to sit down,” Carney told reporters in Kuala Lumpur, Malaysia, where he was attending a regional summit.
Tariff Hike and the Reagan Ad Fallout
President Trump’s decision to hike tariffs by an additional 10 percent follows his strong condemnation of an ad sponsored by the Ontario government. The ad, which aired in the U.S., quoted a 1987 radio address by the Republican icon, Ronald Reagan, who warned that “high tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars.”
Trump called the campaign “fake” and said it contained a “serious misrepresentation of the facts.” The Ronald Reagan Presidential Foundation and Institute on Thursday also weighed in, stating the ad used “selective audio and video” and that it was “reviewing its legal options.”
In a move intended to de-escalate the diplomatic row and clear a path for renewed talks, the Ontario government announced it would pull the offending anti-tariff ad on Monday.
The newly announced 10% levy adds to existing U.S. sectoral tariffs on steel, aluminum, and automobiles, which have already put immense pressure on Canada’s economy, resulting in job losses and squeezed businesses.
Progress Halted and Diplomatic Detour
Carney lamented the disruption to previous efforts, noting that the two sides “had made considerable progress on a supplement to the trading relationship that we had,” including on key areas like steel, aluminum, and energy.
The Prime Minister confirmed he had not had any direct contact with President Trump in Kuala Lumpur, a summit the U.S. President attended before departing earlier on Monday for Japan.
With the bilateral U.S. track stalled, Carney is prioritizing other diplomatic avenues. He confirmed he has agreed to meet with Chinese President Xi Jinping on Wednesday. The two leaders are scheduled to hold a discussion on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea. Carney stated that talks with President Xi would focus on their “commercial relationship, as well as the evolution of the global system.”
President Trump is also expected to attend the APEC dinner in South Korea, though the U.S. President has already signaled that he has “no plans” to meet with Prime Minister Carney.