By Maiya Keidan and Doina Chiacu
TORONTO/WASHINGTON (Reuters) -Prime Minister Mark Carney said on Friday that Canada stands ready to resume trade talks with the United States that President Donald Trump halted over an anti-tariff advertisement issued by Ontario's provincial government.
Trump terminated the talks on Thursday over the video which used Republican icon, former President Ronald Reagan, saying tariffs cause trade wars and economic disaster.
In a late-night social media post, Trump called the ad fraudulent.
Carney has tried on two White House visits since becoming prime minister to strike a deal to lower import tariffs on steel, aluminum and autos imposed by Trump that have hurt Canada's economy.
Despite Carney's overture to revive U.S. talks, Ontario Premier Doug Ford said he ordered the ads to keep running during the weekend's baseball World Series games between the Toronto Blue Jays and Los Angeles Dodgers to reach a bigger U.S. audience.
"In speaking with Prime Minister Carney, Ontario will pause its U.S. advertising campaign effective Monday so that trade talks can resume," said Ford, who has previously clashed with Trump administration officials over tariffs.
CARNEY SAYS HE SEEKS 'CONSTRUCTIVE NEGOTIATIONS'
"My colleagues have been working with their American colleagues on detailed constructive negotiations, discussions on specific sectors," Carney said before departing Ottawa for his first official visit to Asia, where he aims to diversify trade ties away from the United States.
Carney had removed most of Canada's retaliatory tariffs on U.S. imports imposed by his predecessor, but White House adviser Kevin Hassett said Trump was frustrated with Canada and trade talks have not been going well.
"I think the frustration has built up over time," Hassett, director of the National Economic Council, told reporters at the White House. "The Canadians have been very difficult to negotiate with."
Asked for specifics, Hassett cited a "lack of flexibility."
In a separate post on Friday, Trump accused Canada of trying to influence the U.S. Supreme Court as it prepares to hear arguments next month over the legality of Trump's sweeping global tariffs.
The Ronald Reagan Presidential Foundation said the ad used "selective audio and video." It said it was examining legal options.
The ad's voiceover consists of Reagan, a hero to many U.S. Republicans, criticizing tariffs on foreign goods while saying they cause job losses and trade wars. The video uses five complete sentences from the five-minute weekly address, spliced together out of sequence.
"The ad misrepresents the Presidential Radio Address (by Reagan in 1987), and the Government of Ontario did not seek nor receive permission to use and edit the remarks," a Foundation statement said.
The ad does not mention that Reagan was using the address to explain that tariffs imposed on Japan by his administration should be seen as a sadly unavoidable exception to his basic belief in free trade as the key to prosperity.
In the broadcast, Reagan says: "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."
He also says: "...over the long run such trade barriers hurt every American worker and consumer," and that the result of trade wars is that "Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs."
White House spokesperson Kush Desai called the selective editing of Reagan's statement "the latest example of how Canadian officials would rather play games than engage with the (Trump) administration."
"Further talks are a futile effort if Canada can't be serious," Desai added.
AUTOS QUOTA CUTS
Earlier on Thursday, Canada sharply reduced tariff-free import quotas for General Motors and Stellantis, citing their decisions to scale back manufacturing in the country.
Trump's trade war has increased U.S. tariffs to their highest levels since the 1930s and he has regularly threatened more duties, sparking concerns among businesses and economists.
Next year, the U.S., Canada and Mexico are due to review their 2020 continental free-trade agreement.
Carney said he recognizes U.S. trade policy has fundamentally changed, however.
"A lot of progress has been made, and we stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions, because it will be for the benefit of workers in the United States, workers in Canada and families in both of our countries."
(Reporting by Kanishka Singh, Katherine Jackson, Doina Chiacu, Susan Heavey and Steve Holland in Washington; Writing by Kevin Liffey and Caroline Stauffer; Editing by Tom Hogue, Chizu Nomiyama and Howard Goller)
