According to U.S. media reports, President Donald Trump withdrew from trade negotiations with Canada on Thursday night, angry at a "false" television ad released by the Ontario provincial government, which quoted former President Ronald Reagan's remarks from 38 years ago criticizing tariffs - a key economic tool for Trump. The ad included an audio clip from a radio speech by Reagan on April 25, 1987, in which he said, "In the long run, these trade barriers will harm every American worker and consumer."
On Friday, Trump attacked the ad on Truth Social, posting, "Canada caught cheating!! They fraudulently bought a big ad saying Ronald Reagan didn't like tariffs, but in fact, he loved them for our country and its national security."
The Ronald Reagan Presidential Foundation and Institute criticized the ad on X (formerly Twitter) on Thursday night, stating that it "distorted the content of the 'President's Radio Address on Freedom and Fair Trade' on April 25, 1987." Although Trump called the ad false, Reagan's words were indeed present. However, the context was missing. Here is the factual situation: Reagan was concerned about the rising economic strength of Japan during his presidency, and he delivered this speech a week after imposing tariffs on Japanese semiconductors; he tried to explain this decision that seemed inconsistent with his reputation as a free trader.
Indeed, Reagan did not like tariffs. He often criticized government policies that interfered with free trade - including tariffs and other protectionist measures - and repeatedly explained his reasons against tariffs in his 1987 radio address. "High tariffs will inevitably lead to foreign retaliation, triggering fierce trade wars," he said. "The result is more tariffs, higher trade barriers, and less competition. Therefore, soon, due to tariffs artificially increasing prices, thus subsidizing inefficient and poorly managed companies, people will stop buying. Then the worst happens: the market contracts and collapses; businesses and industries fail; millions of jobs are lost." However, Reagan's policies were more complex than his rhetoric. In addition to imposing tariffs on Japanese semiconductors, Reagan also imposed taxes on heavy motorcycles from Japan to protect Harley-Davidson.
He also forced Japanese car manufacturers to accept "voluntary" restrictions on exports to the United States, ultimately encouraging them to build factories in the Midwest and South of the United States. He also pressured other countries to lower their currency values to help American exports be more competitive in world markets. Robert Lighthizer, Reagan's trade official and who served as Trump's chief trade negotiator from 2017 to 2021, wrote in his 2023 memoir, "President Reagan distinguished between theoretical free trade and practical free trade." In 1988, an analyst at the Cato Institute, a libertarian think tank, even claimed that Reagan was "the most protectionist president since Herbert Hoover - the heavyweight champion of protectionists." However, Reagan was not a trade warrior. When talking about semiconductor tariffs in his April 1987 radio address, he stated that he had been forced to impose tariffs because Japan had not fulfilled trade agreements, "These tariffs or any form of trade barriers and restrictions are steps I am reluctant to take."
On the other hand, Trump has no such reservations. He advocates tariffs to protect American industries, bring manufacturing back to the United States, and raise funds for the Treasury. Since returning to the White House in January, he has imposed double-digit tariffs on almost all countries and specific products including cars, steel, and pharmaceuticals. According to data from the Yale Budget Lab, the average effective tariff rate in the United States has risen from about 2.5% at the beginning of 2025 to 18%, the highest level since 1934. Trump is fond of using import taxes - he proudly calls himself the "Tariff Man" - which has led to challenges from businesses and states, who accuse him of overstepping his authority. The Constitution grants Congress the power to tax, including tariffs, but legislators have gradually given up a significant portion of trade policy powers to the White House. The Supreme Court is expected to hear the case at the beginning of next month. Trump claimed on Thursday that the Canadian ad aimed to "interfere with decisions of the U.S. Supreme Court and other courts."
Original: www.toutiao.com/article/1846950840049664/
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