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Trump halted talks over Ontario's anti-tariff ad featuring

Reagan

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Carney seeks 'constructive negotiations'

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Ontario ad criticized for misrepresenting Reagan's trade

views

(Updates with new headline)

By Maiya Keidan and Doina Chiacu

TORONTO/WASHINGTON, Oct 24 (Reuters) - Prime Minister

Mark Carney said on Friday that Canada stands ready to resume

trade talks with the United States that President Donald Trump

halted over an anti-tariff advertisement issued by Ontario's

provincial government.

Trump terminated the talks on Thursday over the video which

used Republican icon, former President Ronald Reagan, saying

tariffs cause trade wars and economic disaster.

In a late-night social media post, Trump called the ad

fraudulent.

Carney has tried on two White House visits since becoming

prime minister to strike a deal to lower import tariffs on

steel, aluminum and autos imposed by Trump that have hurt

Canada's economy.

CARNEY SAYS HE SEEKS 'CONSTRUCTIVE NEGOTIATIONS'

"My colleagues have been working with their American

colleagues on detailed constructive negotiations, discussions on

specific sectors," Carney said before departing Ottawa for his

first official visit to Asia, where he aims to diversify trade

ties away from the United States.

Carney had removed most of Canada's retaliatory tariffs on

U.S. imports imposed by his predecessor, but White House adviser

Kevin Hassett said Trump was frustrated with Canada and trade

talks have not been going well.

"I think the frustration has built up over time," Hassett,

director of the National Economic Council, told reporters at the

White House. "The Canadians have been very difficult to

negotiate with."

Asked for specifics, Hassett cited a "lack of flexibility."

In a separate post on Friday, Trump accused Canada of trying

to influence the U.S. Supreme Court as it prepares to hear

arguments next month over the legality of Trump's sweeping

global tariffs.

The Ronald Reagan Presidential Foundation said the ad used

"selective audio and video." It said it was examining legal

options.

The ad's voiceover consists of Reagan, a hero to many U.S.

Republicans, criticizing tariffs on foreign goods while saying

they cause job losses and trade wars. The video uses five

complete sentences from the five-minute weekly address, spliced

together out of sequence.

"The ad misrepresents the Presidential Radio Address (by

Reagan in 1987), and the Government of Ontario did not seek nor

receive permission to use and edit the remarks," a Foundation

statement said.

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 a sadly unavoidable exception to his basic

belief in free trade as the key to prosperity.

Ontario Premier Doug Ford said this week that the ad from

his provincial government, more than a week old, had caught

Trump's attention. Ford has frequently urged Carney to take a

more aggressive approach with Trump.

In the broadcast, Reagan says: "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."

"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."

Earlier on Thursday, Canada sharply reduced tariff-free

import quotas for General Motors ( GM ) and Stellantis ( STLA )

, citing their decisions to scale back manufacturing

in the country.

Trump's 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.

Next year, the U.S., Canada and Mexico are due to review

their 2020 continental free-trade agreement.

Carney said he recognizes U.S. trade policy has

fundamentally changed, however.

"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, because it will

be for the benefit of workers in the United States, workers in

Canada and families in both of our countries."