Trump states US ends trade discussions with Canada
(MENAFN) U.S. President Donald Trump has officially ended all trade negotiations with Canada, condemning Ottawa’s digital services tax as a “direct and blatant attack” on the United States. The announcement follows escalating tensions between the two countries that began when Trump imposed 25% tariffs on Canadian imports shortly after taking office. Canada responded with retaliatory tariffs of its own.
Although Trump later paused the tariffs and signaled a willingness to negotiate favorable deals for U.S. businesses, his administration has maintained a tough stance toward Ottawa. The president has repeatedly claimed that Canada benefits unfairly from U.S. economic support, even controversially suggesting that Canada should become the 51st U.S. state.
In a Truth Social post on Friday, Trump criticized Canada as “a very difficult Country to TRADE with” and slammed its recently enacted digital services tax, which he said unfairly targets American tech companies. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump declared. He added that the U.S. would soon inform Canada of the new tariffs it would face when doing business with the United States, giving Ottawa seven days to prepare.
In response, Canadian Prime Minister Mark Carney said Canada would continue negotiations in the best interest of its citizens but confirmed he had not yet spoken directly with Trump about the issue.
Canada’s digital services tax, which came into effect in June 2024, applies a 3% levy on profits from digital services earned in Canada by companies making over CAD 20 million (about $14.5 million USD) annually. The first tax payments are due Monday, and Canadian media estimate U.S. tech giants such as Amazon, Google, Apple, Meta, Uber, and Airbnb will collectively owe around $2 billion by the end of July. The tax is retroactive to January 1, 2022.
In March, Carney condemned Trump’s tariffs as “unjustified” and vowed that Canada would prevail in the trade dispute. He firmly rejected any suggestion of U.S. annexation, declaring, “Canada will never, ever, in any way, shape, or form, be part of the United States.”
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