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Canadian Prime Minister Mark Carney on Saturday said he had apologised to US President Donald Trump over an anti-tariff advertisement featuring former US President Ronald Reagan, after Trump said he was “offended” by it. The controversy has reignited tensions between Washington and Ottawa, with trade talks suspended and tariffs set to rise. The row, which began with an ad posted by Ontario Premier Doug Ford, has now drawn in the Reagan Presidential Foundation and intensified scrutiny over Canada’s handling of US-Canada trade relations amid ongoing tariff disputes.

Carney, speaking to journalists in Gyeongju, South Korea, confirmed that he had reached out directly to Trump. “I did apologise to the president. The President was offended,” he said, adding that trade negotiations would resume only when the United States was “ready.”

Trump, in response, announced a 10 percent tariff hike on Canadian goods and terminated all trade talks, calling the advertisement “fake” and “disrespectful.”

The controversial ad, which ignited the diplomatic fallout, was originally posted on X  by Ontario Premier Doug Ford. It featured a vintage audio clip of Ronald Reagan cautioning against tariffs, warning they may appear patriotic at first but “over the long run… hurt every American worker and consumer.” The ad aired during a high-profile American League Championship Series game between the Toronto Blue Jays and the Seattle Mariners, attracting over 9 million viewers on Fox Sports.

However, the Reagan Presidential Foundation said it was “reviewing its legal options,” claiming that Ontario “did not seek nor receive permission to use and edit” the late president’s remarks, according to NBC News.

Amid the turmoil with Washington, Carney described his talks with China’s President Xi Jinping as a “turning point” in Canada-China relations. He said he had addressed sensitive issues such as foreign interference during their meeting.

Relations between Canada and China have been among the most strained of any Western nation in recent years. But both countries now face economic pressure from Trump’s renewed tariff measures, even after Xi and Trump agreed on Thursday to ease tensions. The meeting marked the first formal talks between the leaders of China and Canada since 2017.