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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Breakdown in Trade Talks Between U.S. and Canada, Explained
Negotiations between the U.S. and Canada have broken down, with President Donald Trump announcing that he is “terminating” all trade discussions with his northern neighbor. “We are hereby terminating ALL discussions on trade with Canada, effective immediately,” Trump said on Friday. “We will let Canada know the tariff that they will be paying to do business with the United States of America within the next seven-day period.” [time-brightcove not…
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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