USA and Canada Flags
U.S. President Donald Trump has announced an immediate end to all trade discussions with Canada, citing the federal government’s new digital services tax (DST) on large American tech firms.
Trump made the declaration Friday via a post on his Truth Social platform. He accused Canada of imposing an “egregious” tax on U.S. technology companies and said his administration would notify Canada within seven days about new tariffs for doing business with the United States.
Canada’s DST targets digital services like online advertising, streaming, and e-commerce platforms that generate substantial revenue from Canadian users but are based abroad. It aims to ensure multinational tech companies pay their fair share of taxes in Canada.
The sudden breakdown in trade talks comes just weeks after a seemingly productive G7 summit held in Alberta, where both Trump and Prime Minister Mark Carney expressed hope for an agreement. Trump’s move could reignite tensions between the two trading partners and create new economic uncertainty.
As of now, Canadian officials have not publicly responded to Trump’s announcement or indicated whether negotiations might resume. The situation is evolving, and details on the proposed U.S. tariffs are expected in the coming days.
(Written by: Joseph Goden)
