Ontario Leader Derails Negotiations

BY VIPALMONGA

TORONTO—Canadian Prime Minister Mark Carney’s charm offensive with President Trump seemed to be working when the two men had a chummy Oval Office meeting two weeks ago, and aides held talks to lower American tariffs.

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 Thursday, Trump said on Truth Social that the ad was “FAKE” and announced that he had ended trade talks with Canada.

On Friday, Ford 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. “Ontario will pause its U.S. advertising campaign effective Monday so that trade talks can resume,” he said.

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 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,” Ford has said.

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.

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.