Reagan 1987 address was defence of free but fair trade

U.S. President Donald Trump said on Thursday that all trade talks with Canada were terminated following what he called a fraudulent advertisement by the Canadian province of Ontario in which Reagan was featured speaking negatively about tariffs.

Separately, the Ronald Reagan Presidential Foundation issued a statement saying the ad used "selective audio and video" and misrepresented the address.

Reagan's 5-minute statement contains a strong defence of the benefits of free trade while explaining his decision the week before to impose tariffs on Japan due to its "inability to enforce their trade agreement with us on electronic devices called semiconductors."

"We expect our trading partners to live up to their agreements. As I've often said: Our commitment to free trade is also a commitment to fair trade," he said.

He added that while trade restrictions of any kind were a step he was "loath to take", the U.S. had evidence in the "special case" of unfair trade practices by Japanese companies.

What follows is the lengthy warning of the dangers of trade protectionism used in the Ontario ad, in which Reagan cites how it contributed to the economic misery experienced in the 1930s Great Depression.

"High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars," he said of a spiral that leads to higher prices and less competition.

"Then the worst happens: Markets shrink and collapse; businesses and industries shut down; and millions of people lose their jobs".

He concludes by looking forward to imminent talks with the Japanese premier on the matter and warns against any moves in Congress towards more protectionism that would tie his hands in trade dealings with foreign governments. He added: "Remember, America's jobs and growth are at stake."