The Ad That Ended US-Canada Trade Talks

Summary

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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]

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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.

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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])

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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])

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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]).

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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])

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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])

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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])

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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]

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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.

Transcript

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[Kate Bullivant]

President Trump calls off all trade talks with Canada over a controversial Ronald Reagan ad. Plus, the White House confirms Trump and Chinese leader Xi Jinping will meet next week, and the pressure is on for lawmakers as the continuing government shutdown looks to end paychecks for many federal workers.

[Anvi Bhutani]

Some reps on both sides are working towards interim measures that could maybe help pay certain workers, but ultimately the leadership of both parties are grounded in their positions and neither side is really willing to Compromise.

[Kate Bullivant]

It's Friday, October 24th. I'm Kate Bullivant for the Wall Street Journal, and here is the AM edition of what's News. The top headlines Business stories Moving your world Today, President Trump says he's calling off trade talks with Canada, pointing to a TV ad paid for by the Ontario government. The advertisement features snippets of a voiceover of Ronald Reagan's radio address from Camp David in 1987 when he spoke about the negative impacts of tariffs on American businesses and workers.

[Daniel Bark]

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.

[Kate Bullivant]

Posting on social media, Trump called the ad fraudulent and fake and argued that it was designed to interfere with the courts as they weigh the legality of his global tariffs. The White House didn't immediately respond to a request for more information ahead of Trump's comments. Late last night, the Ronald Reagan Presidential foundation and Institute said the ad misrepresented Reagan's address and that the Ontario government didn't ask for permission to use the audio. The foundation didn't clarify about what was inaccurate about the ad. And as our Daniel Bark explains, the threat to cut off negotiations comes just two weeks after Canadian Prime Minister Mark Carney visited Trump at the White House.

[Daniel Bark]

The two countries had been in discussions about how to reduce certain tariffs, in particular the 50% levies Trump has placed on Canadian aluminum and steel since then. Ontario has long auto sector jobs, as Stellantis and GM announced this month they're pulling back from building cars in the province and shifting some of that production to the US Partly because of Trump's tariffs. And in response, Canada said yesterday it's cutting the number of vehicles Stellantis and GM can import into the country tariff free. Here's Prime Minister Mark Carney speaking earlier this week.

[Mark Carney]

Many of our former strengths as a country, former strengths, more particularly is our economy. Strengths based on close ties to America have become our vulnerabilities. And as a result of that, the jobs of workers in our industries most affected by the US Tariffs in autos and steel and lumber are under threat now.

[Daniel Bark]

At the same time, Ontario's leader, Doug Ford has been pushing Canada to be more aggressive with the US in its negotiations, saying he's willing to retaliate by curbing energy and mineral exports.

[Kate Bullivant]

The White House has announced that a hotly anticipated meeting between President Trump and Chinese leader Xi Jinping will go ahead in Asia next week. Thursday's meeting potentially paves the way to de escalate trade tensions between the world's two largest economies that have flared up as Beijing expanded curbs on exports of rare earth minerals earlier this month. Markets reporter Chelsea Delaney is here. Chelsea, stocks seem to be buoyed by news of this meeting.

[Chelsea Delaney]

Yes, markets are still very much paying attention to trade tensions. We've seen over the past couple of weeks. When the tensions do start to escalate again, markets sell off. And now that we do have this meeting confirmed, we've seen stocks rise. Investors are seeing this as good news because there are still a lot of outstanding trade issues. The trade relationship between China and the US Remains a bit of a rollercoaster. We've seen Trump in the past couple of weeks threatening terror tariffs of 100% and then 155%. That's something that would be very important to investors if we do see, you know, a big escalation in this trade war because, you know, so far, markets have been very resilient. The global economy, the US Economy, Asian economies have been very resilient to these trade tensions. But that's because there's a lot of exceptions. There's a lot of exceptions to the tariffs and things like that. So I think investors are definitely going to be watching this closely.

[Kate Bullivant]

So, Chelsea, how much is at stake here when looking at the broader Asian economy?

[Chelsea Delaney]

Yeah, there's obviously a lot at stake for these economies. We're talking about China, but also South Korea has been waiting for a trade deal to be finalized for months now. They thought they had a deal in July. It hasn't been signed. So that's another country that is really hopeful that this Trump tour through Southeast Asia will actually lead to some of these trade tensions easing further. So Asian economies have been doing better, better than expected. But the IMF warned in our recent report that we haven't felt the full blow of these US Tariffs yet. And there's a secondary impact as well, where all of the volatility, the back and forth, the uncertainty around where the tariff rate will actually settle, that actually has a negative impact as well on people and businesses and their willingness to invest and sentiment. Overall.

[Kate Bullivant]

We'Ve exclusively reporting that the US flew Air Force B1 bombers near Venezuela yesterday, ramping up pressure on President Nicolas Maduro. According to a US official and flight tracking data, two B1 Lancers took off from an air base in Texas and flew near the country, though they remained in international airspace. Journal correspondent Shelby Holiday says the flights signal a possible widening of the U.S. s campaign against cartels and alleged drug traffickers in the region.

[Shelby Holiday]

They appear to be a show of force, a sign to Venezuelan leader Nicolas Maduro that the US can and will show up on Venezuela's doorstep. But the planes also appear to be conducting surveillance since bombers are equipped with advanced sensors. As their name suggests, bombers also carry heavy bombs, and the planes could be used to hit narcotics facilities in South America. If President Trump decides to carry out strikes on targets on land, officials tell the Journal that the tempo of bomber missions could increase and Venezuela is bracing for an attack.

[Kate Bullivant]

It comes just a week after B52 bombers also flew near Venezuela, where the country's military held training exercises in September, with the Pentagon describing the flights as an attack demonstration. We should note that after the Journal published this story, President Trump told reporters at the White House it was not accurate. Coming up, the biggest US Companies are outperforming in this earnings season, and that's a welcome relief for investors anxious about the economy. More on that story after the break.

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[Kate Bullivant]

Strong corporate earnings are easing investors anxieties about the health of the US Economy. On Thursday, intel became the latest company to top Wall Street's expectations, adding to a list of other upbeat reports in recent days from the likes of Coca Cola, 3M and General Motors. As market reporter Sam Goldfarb explains, the positive results are particularly welcome after a series of bankruptcies and alleged fraud stoked concerns about cracks in the credit market.

[Sam Goldfarb]

Put together that raised concerns that there could be growing weakness among maybe lower income consumers. Maybe this was exposing excesses in the credit market where investors had been lending too freely in the past. And maybe this could cause a turn in the market where investors then pulled back credit, which can be bad for the economy.

[Kate Bullivant]

He says corporate earnings are getting out size attention because of the weeks long government shutdown which has halted the normal flow of data.

[Sam Goldfarb]

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 that it provides. And that economic data in recent years sometimes causes concern, but very often it sort of alleviated fears.

[Kate Bullivant]

Whether it'll alleviate fears or not, investors will get a delayed readout on monthly consumer inflation today after the Trump administration administration recalled some workers to finish a report that'll allow the government to calculate Social Security payments. September's CPI print is due out at 8:30am Eastern. And as that government shutdown drags on, there are a number of looming funding cliffs that could start to pinch more workers and families, as the Journal's Anvi Bhutani explains.

[Anvi Bhutani]

One of those is today, October 24, when federal employees are expected to miss their first full paychecks. They already received partial paychecks earlier this month, but many workers are continuing to work without pay next week. We expect to see more paychecks being lost on Tuesday, as well as military personnel potentially losing pay later in the week. Further to that, the ACA subsidies issue will really start to become real for families when open enrollment opens on November 1st. Once the open enrollment period is there, millions of Americans shopping for their 2026 healthcare coverage, we'll see how much their costs are rising by. Also, programs like SNAP and Head Start, which is a federal low income preschool program, will also likely run out of funding by the end of this month.

[Kate Bullivant]

And ANVI says those funding cliffs could put pressure on lawmakers to end the shutdown now in its fourth week.

[Anvi Bhutani]

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. The other problem is 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.

[Kate Bullivant]

You can find a link to a rundown of those funding deadlines in our show notes. And that's it for what's news for this Friday morning. Today's show was produced by Daniel Bark. Our supervising producer is Sandra Kilhoff and I'm Kate Bullivant for the Wall Street Journal. We'll be back tonight with a new show. Until then, have a great weekend and thanks for listening.

[Daniel Bark]

What's driving the markets this week? What's on investors minds as they look ahead? Find out on the Markets podcast from Goldman Sachs. A breakdown of market moves and macro signals in 10 minutes or less. The Markets podcast from Goldman Sachs. Listen now.