Fairmount Bagels are organized for shipping to stores and grocers to sell in the Montreal area.

WASHINGTON – A day after President Donald Trump announced that all trade talks with Canada had been terminated due to a regional government's posting of a "FAKE" advertisement that showed former President Ronald Reagan speaking negatively about tariffs, he said the country's tariff actions had been targeting American farmers.

"Canada has long cheated on Tariffs, charging our farmers as much as 400%. Now they, and other countries, can’t take advantage of the U.S. any longer," Trump said in a Truth Social post on Oct. 24.

"CANADA CHEATED AND GOT CAUGHT!!! They fraudulently took a big buy ad saying that Ronald Reagan did not like Tariffs, when actually he LOVED TARIFFS FOR OUR COUNTRY, AND ITS NATIONAL SECURITY," he wrote.

The Ronald Reagan Presidential Foundation said the ad posted by the government of Ontario had used "selective audio and video," and that it was examining legal options."

The ad misrepresented the Presidential Radio Address (by Reagan in 1987), and Ontario "did not seek nor receive permission to use and edit the remarks," a foundation statement said.

The video uses five complete sentences from the five-minute weekly address, spliced together out of sequence, according to Reuters.

"When someone says, 'Let's impose tariffs on foreign imports,' it looks like they're doing the patriotic thing by protecting American products and jobs," Reagan says. "And sometimes for a short while it works – but only for a short time."

He also says: "Over the long run, such trade barriers hurt every American worker and consumer," and that the result of trade wars is that "markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs."

The ad does not mention that Reagan was using the address to explain that tariffs imposed on Japan by his administration should be seen as an unavoidable exception to his basic belief in free trade as the key to prosperity.

Trump credited the Ronald Regan Presidential Foundation and Institute for "exposing this FRAUD."

In Canada, Canadian Prime Minister Mark Carney told reporters that trade negotiations with the United States had been constructive.“A lot of progress has been made, and we stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions," he said. "Because it will be for the benefit of workers in the United States, workers in Canada and families in both our countries."

Trump also repeated the claim that Canada had been trying to "illegally influence" the U.S. Supreme Court, "in one of the most important rulings in the history of our country."

The Supreme Court is set to hear arguments on Nov. 5 about whether Trump has the authority to impose tariffs under the 1977 International Emergency Economic Powers Act. Lower courts have ruled he overstepped his authority under a law historically used to impose economic sanctions and other penalties on foreign enemies.

Tariffs have become the centerpiece of Trump's economic policy. The Congressional Budget Office estimates that the increased tariffs will lower total deficits by a combined $4 trillion over the next decade.

Reagan championed free trade while selectively deviating from it, according to the Cato Institute, a libertarian think tank. For instance, he negotiated “voluntary” import quotas for steel and Japanese cars and imposed tariffs on imported motorcycles to protect Harley-Davidson. But those were the exceptions and not the rule, the Institute says.

Trump has said that he might attend the Supreme Court arguments because of the case’s importance in defending American jobs and discouraging wars abroad.

The president shared a statement issued by the foundation, which said that the government of Ontario had created the ad using "selective audio and video" of Reagan delivering his "Radio Address to the Nation on Free and Fair Trade," on April 25, 1987. The foundation said the advertisement "misrepresents" the address.

"Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED," Trump wrote on Truth Social on Oct. 23.

Ontario Premier Doug Ford said earlier this week that the ad with anti-tariff messaging had caught Trump's attention. The ad showed Reagan, a Republican, criticizing tariffs on foreign goods and saying tariffs caused job losses and trade wars.

"I heard that the president heard our ad. I'm sure he wasn’t too happy," Ford said on Oct. 23.

Trump has used tariffs as leverage with many countries around the world.

His trade war has increased U.S. tariffs to their highest levels since the 1930s, and he has regularly threatened more duties, sparking concerns among businesses and economists. Canadian Prime Minister Mark Carney told reporters on Oct. 23 that Canada would not allow unfair U.S. access to its markets if talks on various trade deals with Washington fail.

Trump imposed tariffs on Canadian steel, aluminum and autos earlier this year, prompting Ottawa to respond in kind. The two sides have been in talks for weeks on a potential deal for the steel and aluminum sectors.

Next year, the U.S., Canada, and Mexico are due to review their 2020 continental free-trade agreement.

Contributing: Reuters; Michael Collins, Bart Jansen, USA TODAY

This article originally appeared on USA TODAY: Trump says he's cancelling trade talks with Canada after 'FAKE' Ronald Reagan ad

Reporting by Swapna Venugopal Ramaswamy, USA TODAY / USA TODAY

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