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Trump ends all U.S. trade talks with Canada over digital services tax

CANADA, JUN 27 – President Trump halted trade talks in response to Canada's 3% Digital Services Tax on U.S. tech firms, with tariffs on Canadian goods expected within seven days, risking a trade escalation.

  • On June 27, President Donald Trump declared the immediate cessation of trade talks with Canada and announced plans to impose new tariffs within a week in response to Canada’s implementation of a digital services tax.
  • Canada enacted a 3% digital tax last year targeting revenues of U.S. tech firms like Amazon and Meta, leading to U.S. objections and trade tensions.
  • Canadian Prime Minister Mark Carney stated negotiations continue and Ottawa may adjust counter tariffs if no trade deal is reached, while U.S. Treasury Secretary Scott Bessent warned of further restrictions.
  • The digital tax's estimated impact includes a Can$5.9 billion revenue over five years, and U.S. business groups urged delaying payments due June 30 while talks proceed.
  • The dispute signals escalating U.S.-Canada trade friction ahead of wider tariff deadlines, with outcomes dependent on July negotiations and possible tax renegotiations.
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U.S. President Donald Trump announced the immediate rupture of all trade negotiations with Canada, calling the Canadian decision to impose a tax on digital services as a "direct and flagrant attack" on his country. READ ALSO: The U.S.: Trump claims he signed an agreement with China and will do so with India In addition, on the same day, the president attacked the European Union (EU), which he accused of being "very unpleasant" for applying "very…

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udgtv broke the news in on Friday, June 27, 2025.
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