Many of us, at some point in our lives, have experienced the drama of a messy friendship with someone who melts down over the tiniest slight.
Now, unfortunately for us, someone very much like that is the president of the United States.
Driving the news: Late Thursday night, Donald Trump said he was walking away from trade talks with Canada because he was upset about a television ad promoting free trade that the Ontario government has been running in Republican-led districts of the U.S.
- The ad used clips of a speech delivered by former president (and current Republican hero-figure) Ronald Reagan, in which he defended the principles of free trade.
- Ontario Premier Doug Ford appeared to stand by the ad yesterday, re-posting it on his social media channels, but later said the ads will stop running next week.
Why it matters: The blow-up shows how difficult it will be for Canada to strike a durable agreement with the Trump administration, which has proven to be an erratic (to put it mildly) counterparty at the negotiating table.
- If this episode sounds familiar, it’s because Trump terminated trade talks in June over the Digital Services Tax, which Ottawa then quickly scuttled.
Meanwhile: Trump does appear eager to come to terms with China, a country that has significantly more leverage over the U.S. and has shown, with its recent restriction on rare earth exports, that it can inflict real damage on the American economy.—TS