U.S. President Trump announced the immediate suspension of all trade negotiations with Canada. In a statement on his Truth Social account, he said the Canadian government had released an ad attacking Reagan’s customs policies, declaring: “Due to this grave act, all trade discussions with Canada have been canceled.”

The Trump administration currently imposes a 35% tariff on imports from Canada, though products covered under the United States–Mexico–Canada Agreement (USMCA) remain exempt.

However, Washington has also introduced additional sector-based tariffs on certain Canadian goods — including a 50% levy on metals and 25% on automobiles.

Rising Tensions in the Trade Corridor

Trump’s announcement marks one of the toughest diplomatic moves in recent U.S.–Canada trade relations. Economic analysts warn the decision could directly impact the $800 billion trade volume between the two nations.