US President Donald Trump announced on Thursday that all trade discussions with Canada have been terminated, citing the discovery of a fraudulent advertisement featuring former President Ronald Reagan.

In this ad, Reagan spoke negatively about tariffs, stating they led to job losses and trade wars.

Ontario Premier Doug Ford had previously noted that the ad had likely drawn Trump's attention.

The US President has frequently used tariffs as a means of leverage against various countries worldwide.

These increased tariff levels have not been seen since the 1930s, leading many businesses and economists to express concern.

Canadian Prime Minister Mark Carney stated on Thursday that Canada would not permit unfair access to its markets if negotiations over multiple trade deals with Washington were to fail.

The ongoing trade tensions between the US and Canada include tariffs imposed by Trump on Canadian steel, aluminum, and autos earlier in the year, prompting retaliatory measures from Ottawa.

Both countries have been engaging in talks for several weeks regarding a potential deal for the steel and aluminum sectors.

Additionally, next year will see the review of their 2020 continental free-trade agreement involving the US, Canada, and Mexico.