In a surprising move, U.S. President Donald Trump announced on Friday that the United States is terminating all trade talks with Canada. The decision comes in response to Canada’s plan to impose a digital services tax on American technology companies.
“Canada has just announced that they are putting a digital services tax on American technology companies, which is a direct and blatant attack on the United States,” Trump stated in a social media post. “Based on this egregious tax, we are hereby terminating ALL discussions on trade with Canada, effective immediately.”
The president indicated that the United States will inform Canada of new tariffs on Canadian businesses within the next seven days. The move escalates tensions between the neighboring countries and could have significant implications for trade in North America.
Trump also noted that Canada is following the European Union’s lead in introducing a digital services tax. The EU’s digital tax has been a point of contention with the U.S., which argues that it unfairly targets American companies.
Despite the looming deadline of July 9 for wrapping up trade talks with several partners, White House Press Secretary Karoline Leavitt hinted that the deadline could be extended. “The president is considering all options and will do what’s best for American interests,” Leavitt said on Thursday.
The sudden halt in negotiations raises questions about the future of U.S.-Canada relations and the potential impact on global trade dynamics. Businesses and analysts will be watching closely as the situation develops.
