WSJ What’s News – “The Ad That Ended US-Canada Trade Talks”

Date: October 24, 2025
Host: Kate Bullivant (The Wall Street Journal)
Length Covered: [00:18]–[11:12]

Episode Overview

This episode centers on President Trump's abrupt decision to end all trade negotiations with Canada, triggered by a controversial television ad from Ontario that used archival audio from Ronald Reagan. The episode further covers escalating US trade tensions with China, the US military’s maneuvering near Venezuela, the market’s bullish reaction to strong corporate earnings amid a government shutdown, and the looming economic impacts as the shutdown persists.

Key Discussion Points & Insights

1. US-Canada Trade Talks Collapse Over Ontario Ad

• Incident:
  President Trump halts US-Canada trade talks after Ontario airs a TV advertisement featuring Ronald Reagan's 1987 anti-tariff remarks ([00:54]).
• Trump's Response:
  Trump blasts the ad as “fraudulent and fake” on social media, arguing it attempts to sway ongoing court challenges over his global tariffs ([01:46]).
• Reagan Foundation Reaction:
  The Reagan Presidential Foundation claims the ad misrepresents Reagan and asserts Ontario officials didn’t seek permission but offers no specifics on inaccuracies ([01:46]).
• Context:
  • Recent White House visit between Trump and Canadian PM Mark Carney.
  • Ongoing talks aimed at reducing Trump’s 50% tariffs on Canadian aluminum and steel.
• Economic Fallout:
  • Automakers Stellantis and GM reduce Ontario operations, shifting production to the US ([02:28]).
  • Canada retaliates by capping duty-free imports from those firms.
  • Ontario Premier Doug Ford advocates aggressive countermeasures, including limits on energy and mineral exports ([03:24]).
• Notable Quote:

  “Many of our former strengths as a country, more particularly is our economy — strengths based on close ties to America — have become our vulnerabilities.”
  — Prime Minister Mark Carney ([03:02])

2. US-China Trade Tensions & Upcoming Summit

• Announcement:
  White House confirms Trump-Xi Jinping summit in Asia next week, sparking hope for reduced trade hostilities ([03:39]).
• Market Reaction:
  Investors welcome the news, sending stocks higher amid ongoing tariff rollercoaster ([04:09]).
• Broader Impact / Asian Economies:
  • Uncertainty is stifling investment and optimism across Asia.
  • Example: South Korea delayed trade deal since July ([05:07]).
  • IMF warns full impact of US tariffs on the region is still to come.
• Notable Quote:

  “The trade relationship between China and the US remains a bit of a rollercoaster. We’ve seen Trump… threatening tariffs of 100% and then 155%.”
  — Chelsea Delaney, Markets Reporter ([04:09])

3. US Military Flexes Near Venezuela

• Event:
  Two Air Force B-1 bombers fly near Venezuelan airspace, interpreted as a show of force against President Nicolás Maduro ([05:56]).
• Purpose:
  According to the WSJ, the flights signal readiness for possible strikes targeting narcotics operations ([06:27]).
• Escalation:
  Follows B-52 flyovers and Venezuelan military drills. Pentagon called US flights an “attack demonstration.”
• Notable Quote:

  “They appear to be a show of force, a sign… that the US can and will show up on Venezuela’s doorstep.”
  — Shelby Holiday, Journal Correspondent ([06:27])

• White House Denial:
  Trump later tells reporters the story is inaccurate ([06:58]).

4. Strong Corporate Earnings Amid Market Jitters

• Positive Surprises:
  Companies like Intel, Coca-Cola, 3M, and GM beat earnings expectations, easing investor concerns ([07:51]).
• Backdrop:
  • Recent bankruptcies and fraud cases have increased anxiety about possible credit market weaknesses.
  • Government shutdown limits the flow of key economic data, making earnings reports even more significant ([08:21]).
• Notable Quote:

  “Maybe this was exposing excesses in the credit market… and maybe this could cause a turn in the market where investors then pulled back credit, which can be bad for the economy.”
  — Sam Goldfarb, Market Reporter ([08:21])

5. Worsening Government Shutdown: Economic & Social Fallout

• Missed Paychecks:
  October 24 marks the first full missed paychecks for federal employees. More at-risk next week, including potential lapses for military personnel ([09:39]).
• Broader Impacts:
  • ACA (Obamacare) subsidies, SNAP, and Head Start programs may run out of funds by end-of-month.
  • Open enrollment for 2026 health coverage on November 1 will hit millions with rising costs ([09:39]).
• Legislative Deadlock:
  Both party leaders remain entrenched. Some representatives seek interim solutions, but leadership refuses compromise ([00:39], [10:42]).
• Political Dynamics:
  Progress is stalled as negotiations hinge on Trump, who is departing for Asia ([10:42]).
• Notable Quote:

  “Republicans have repeatedly said that they're not going to vote for any kind of health care reform measures until the government's back in session. But Democrats are not willing to vote to open the government back up until health care negotiations are had.”
  — Anvi Bhutani, Journal Reporter ([10:42])

Notable Quotes & Moments (with Timestamps)

• On Tariffs:

  “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.”
  — Ronald Reagan (archival audio) ([01:31])

• On Economic Vulnerability:

  “Many of our former strengths as a country… have become our vulnerabilities.”
  — Mark Carney ([03:02])

• On Market Volatility:

  “The trade relationship between China and the US remains a bit of a rollercoaster.”
  — Chelsea Delaney ([04:09])

• On Shutdown Impasse:

  “Both sides really see President Donald Trump as key to these negotiations to end the shutdown. However, Trump is leaving for Asia today and shifting his political spotlight overseas.”
  — Anvi Bhutani ([10:42])

• On Government Data Blackout:

  “Some investors are thinking that these are just one off events and that they wouldn’t be getting nearly the same amount of attention if the government was producing the normal economic data…”
  — Sam Goldfarb ([08:48])

Timestamps for Major Segments

• US-Canada Tariff Dispute/Ad Controversy — [00:54]–[03:39]
• Trump-Xi Jinping Summit & Market Reactions — [03:39]–[05:56]
• US Bomber Flights Near Venezuela — [05:56]–[07:32]
• Strong Corporate Earnings — [07:51]–[09:06]
• Shutdown: Economic and Political Impacts — [09:39]–[10:42]

Summary Takeaway

The October 24, 2025, episode of WSJ What’s News clearly depicts a week of geopolitical and economic uncertainty, from the shutting down of NAFTA successor talks over a single, controversial ad, to the persistence of the government shutdown and the evolving chess match on the world stage. Despite turmoil, both the market and Asian economies are described as “resilient”—for now—while political divisions and policy maneuvers at home and abroad keep investors, workers, and businesses on edge.