Former U.S. President Donald Trump has abruptly terminated all trade negotiations with Canada, calling it a “very difficult country to trade with” and slamming Ottawa’s decision to implement a 3% digital services tax (DST) on American tech giants. The move signals a sharp escalation in trade tensions between the two North American neighbors.
💻 Digital Tax Sparks Diplomatic Fallout
- Canada’s DST, effective from July 1, targets revenues of over C$20 million generated by foreign digital firms from Canadian users
- The tax is retroactive to 2022, potentially costing U.S. companies like Google, Amazon, Meta, and Apple nearly $2 billion
- Trump called the tax a “direct and blatant attack” on the U.S. and accused Canada of copying the European Union’s policies
“We are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump posted on Truth Social
⚠️ Tariff Threat Looms
- Trump warned that new tariffs on Canadian goods will be announced within seven days
- He cited long-standing grievances over Canadian dairy tariffs, claiming they cost U.S. farmers up to 400% more
- Talks to finalize a new trade deal, initiated during the June G7 summit, have now collapsed
🇨🇦 Canada’s Response and Economic Impact
- Canadian PM Mark Carney’s office issued a cautious statement, affirming commitment to “complex negotiations” in the interest of workers and businesses
- Trade experts warn the rift could affect $760 billion in annual bilateral trade, disrupting supply chains and investor confidence
- The U.S. Trade Representative may launch a Section 301 investigation, potentially leading to retaliatory tariffs
📌 Why It Matters
- Marks a return to Trump’s “America First” trade stance, reminiscent of his 2018 tariff battles
- Could trigger a broader economic dispute between two of the world’s largest trading partners
- Highlights growing global friction over digital taxation and tech regulation
🔁 Share this article to stay informed on the evolving U.S.-Canada trade standoff and its global implications.
