By Vipal Monga

Two weeks after a chummy Oval Office meeting between Mark Carney and President Trump, Canadian officials were optimistic the prime minister's charm offensive would help persuade the U.S. to lower steel and aluminum tariffs threatening to crush its manufacturing sector.

Then, along came Doug Ford.

The leader of Ontario, Canada's most populous province, upended trade talks between the countries by sponsoring an ad in the U.S. that quotes Ronald Reagan to criticize Trump's tariff policy. Late on Thursday, Trump said on Truth Social that the ad was "FAKE" and announced that he had terminated trade talks with Canada.

For Carney, the disruption comes at a critical time. The Canadian leader has been coming under pressure from opposition politicians to show that he can get Trump to back down on his tariffs. He won a general election in April by promising to guide Canada's economy through an unprecedented crisis and stand up to Trump's threats to rupture Canada's largely tariff-free trading relationship with the U.S.

On Friday, Ford said he had spoken with Carney and said Ontario would pause the ad campaign -- although it will run through the weekend and during the first two games of Major League Baseball's World Series championship, when the Toronto Blue Jays take on the Los Angeles Dodgers. "In speaking with Prime Minister Carney, Ontario will pause its U.S. advertising campaign effective Monday so that trade talks can resume," he said.

It was another example of Ford's pugilistic approach to the trade war with the U.S., and his willingness to retreat when Trump is angered.

Ford has irked U.S. officials by removing U.S. alcohol from the province's state-run liquor stores. In March, he threatened to cut off electricity exports to Michigan, Minnesota and New York state, which prompted Trump to double steel and aluminum tariffs. Though Ford backed off at the time, he again brandished the threat in Toronto this month after U.S. Commerce Secretary Howard Lutnick told a room full of Canadian executives and policymakers that the U.S. was determined to shift auto manufacturing from Canada to the U.S.

Though Ford has no official role in Canada's trade talks, his province has a lot to lose. Ontario is the heart of Canada's manufacturing industry, and home to an auto industry that employs more than 125,000 people.

Trump administration officials have said they want Canada's auto industry to move to the U.S., and a 25% tariff on auto imports seems to be having that effect. Just this month, Stellantis and General Motors both said they will be closing plants in Ontario, putting up to 4,200 people out of work.

"If we can't get a deal, we have to hit back, we just have to," said Ford earlier this month.

Ford's posture is helping boost his popularity. His party leads the provincial opposition, 51% to 25%, according to the polling firm Abacus Data. The perception that Ford is "standing up for Ontario," is anchoring his support, Abacus said.

Carney, leader of Canada's Liberal Party, and Ford, head of Ontario's Progressive Conservative Party, are on different sides of the ideological spectrum but say they are aligned on the trade war.

"We're 100% on the same page," said Ford at a news conference with Carney on Thursday, just hours before Trump's post. Ford conceded it is easy for him to fire shots when he doesn't have to negotiate directly with the White House.

Carney has taken a softer tone than Ford, trying to build goodwill with the U.S. He has rolled back many retaliatory trade measures taken by his predecessor, Justin Trudeau, and canceled plans to impose a digital-services tax on U.S. tech companies, after Trump complained.

"There's times to hit back, and there's time to talk, and right now is a time to talk," Carney said last week.

It remains clear, however, that Ford and Carney aren't persuading Trump to budge from tariffs.

"Neither of those two approaches are hitting the mark directly," said Flavio Volpe, president of the Automotive Parts Manufacturers Association industry group.

The imposition of 50% tariffs on Canadian steel and aluminum, and additional levies on softwood lumber and automobile exports, are shocking a Canadian economy that depends on U.S. trade for a fifth of its gross domestic product. In recent months, Canadian growth has stalled, while unemployment has risen, retail sales have fallen and business confidence has plummeted.

An Abacus poll found 39% believe Carney's government is striking the right balance with Trump, while 21% believe his approach is too soft, and 6% think he is being too aggressive. Overall, Carney's ruling Liberal Party is tied in polls with the opposition Conservatives.

Carney on Friday declined to address Ford's ad when he made a short statement before getting on a plane bound for a gathering of global leaders in Malaysia.

"The government of Canada has had very constructive, in-depth and detailed discussions with the United States to try and make progress in the steel, aluminum, energy sectors as well as other sectors," he said. "We are ready to continue building on that progress when the Americans are ready."

Write to Vipal Monga at vipal.monga@wsj.com

(END) Dow Jones Newswires

October 24, 2025 16:22 ET (20:22 GMT)

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