White House Freezes Canada Talks, Launches China Trade Investigation
On Friday, President Trump announced he is terminating U.S.–Canada trade negotiations, citing an Ontario government television ad that uses excerpts from a 1987 Ronald Reagan radio address to argue that tariffs harm American workers; the Reagan Foundation criticized the ad’s use of Reagan’s remarks and said it was not authorized.
“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump wrote on social media.
The White House has not provided further detail, but multiple outlets report the announcement was posted late Thursday night, with the president alleging the ad was “fake” and intended to influence ongoing legal debates over his tariff program. The move follows Prime Minister Mark Carney’s recent Washington visit, which produced no agreement, and it keeps in place the expanded tariff regime the administration rolled out this year, including Section 232 duties on steel and aluminum imports applied broadly since March 2025.
Negotiations are paused, not treaty-terminating, but the freeze removes the near-term pathway to narrow or suspend metals and other sectoral tariffs; supply chains linked to autos, steel/aluminum, and lumber should assume current duties and compliance processes remain in force and monitor Ottawa/Queen’s Park statements for any calibrated retaliatory steps (Canada eased some countermeasures in September while maintaining core metals/auto responses).
Friday night, Ontario Premier Doug Ford and California Gov. Gavin Newsom took to social media to place a friendly wager ahead of the World Series matchup between the Toronto Blue Jays and Los Angeles Dodgers, while also taking swipes at Trump’s trade policies.
“If the Blue Jays win, I’ll send you some of Ontario’s finest maple syrup in a proper tin can, the way it’s meant to be enjoyed,” Ford said in a video released before Game 1. “The tariff might cost me a few extra bucks at the border these days, but it’ll be worth it for a Jays win.”
Newsom replied that he would send “a bottle of California’s championship-worthy wine,” joking about Canada’s recent ban on U.S. alcohol imports imposed in retaliation for Trump’s tariffs.
Ford announced plans to pull the ad on Monday as Ottawa scrambled to contain fallout. Carney stated Friday night that, “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."
Newsom, a frequent critic of the president, used the moment to highlight California’s trade and tourism ties with Canada, saying the two regions remain committed to “a tariff-free friendship.”
President Trump took to Truth Social Saturday afternoon, remarking, “The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their ‘rescue’ on Tariffs that they have used for years to hurt the United States. Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now. Thank you for your attention to this matter!””
The U.S. Supreme Court is set to begin hearing oral arguments early next month in a legal challenge to some of the president’s tariffs, including many of those he has placed on Canadian exports.
Constitution Partners will be watching for clarification from the Commerce Department on whether technical-level talks are also halted, for any legal action from the Reagan Foundation regarding the ad, and for whether the administration revives previously floated ideas to pursue bilateral tracks separate from USMCA dynamics ahead of the 2026 mandated review.
U.S.–China: New Section 301 Probe
Separately, U.S. Trade Representative Jamieson Greer launched a Section 301 investigation Friday into whether China fulfilled its obligations under the 2020 “Phase One” trade deal. The probe could pave the way for new tariffs and is expected to serve as leverage for Trump’s meeting with Chinese President Xi Jinping next week in South Korea.
The investigation will assess whether Beijing complied with purchase commitments for U.S. goods, including agricultural products, after reports indicated China fell short of the $80 billion target set for 2020–2021. China’s embassy in Washington rejected the claims, arguing it has “scrupulously honored” the deal and that the U.S. has “failed to meet its obligations.”
The move adds to a renewed tariff standoff between the world’s two largest economies. Trump has already imposed fresh export curbs on Chinese technology and threatened an additional 100% tariff on Chinese goods effective November 1 if Beijing does not ease new restrictions on rare-earth mineral exports. The temporary tariff truce reached earlier this year is set to expire in mid-November.
With U.S.–Canada talks on ice and a new U.S.–China probe underway, the global trade environment is once again tightening. Markets tied to metals, autos, agriculture, and clean energy components should expect continued tariff volatility through year-end as Washington leans on trade policy for leverage ahead of Trump’s meetings with Xi and other Asia-Pacific leaders.
Constitution Partners will continue to monitor these trade updates and will be in touch with additional information. Please reach out to a member of our team with any questions.