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Key Points

President Trump has abruptly ended all trade negotiations with Canada in response to its new digital services tax on US tech companies. The US plans to impose retaliatory tariffs on Canadian businesses within the next seven days. Canada's move mirrors the EU's approach, further straining trade relations ahead of a July 9 deadline. Prime Minister Mark Carney had previously clashed with Trump over tariffs and the controversial "51st state" remark.

Key Points: Trump Ends US Canada Trade Talks Over Digital Tax Dispute

  • Trump halts trade talks over Canada's digital services tax
  • US to impose tariffs on Canadian businesses within a week
  • Canada follows EU in taxing US tech giants
  • White House may extend July 9 trade deadline
2 min read

Trump says US to terminate all trade talks with Canada

Trump terminates US-Canada trade negotiations after Canada imposes a digital tax on American tech firms, threatening retaliatory tariffs.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. – Donald Trump"

New York, June 28

US President Donald Trump announced that the United States would terminate all trade talks with Canada due to Canada's digital services tax on US tech companies.

Canada has just announced that they are putting a digital services tax on American technology companies, which is a direct and blatant attack on the United States, said Trump in a post on social media.

"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," said Trump.

The United States would inform Canada the US tariffs that apply to Canadian businesses within the next seven days, according to Trump.

Canada is copying the European Union in introducing digital services tax, noted Trump.

The United States is scrambling to wind up trade talks with a large number of trading partners as the self-imposed deadline of July 9 is approaching, Xinhua news agency reported.

However, White House Press Secretary Karoline Leavitt on Thursday said Trump could extend the deadline.

Earlier in may 2025, Canadian Prime Minister Mark Carney said that he had wide-ranging and constructive discussions with US President Donald Trump in the White House, although the two leaders disagreed on tariffs lifting and the "51st state," according to the live broadcast of CBC News.

Carney said he told Trump it's "not useful" to repeat the 51st state idea, adding that Trump is the president who is going to say whatever he wants.

"He understands that we are having a negotiation between sovereign nations," said Carney.

- IANS

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Reader Comments

P
Priya S
Interesting to see how smaller nations are standing up to US dominance. Canada's digital tax is similar to what India has been considering for foreign tech companies. Maybe we can learn from their approach?
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Aman W
Trump calling it an "attack" is so dramatic! Every country has right to tax companies operating in their territory. India should implement similar taxes on Amazon, Netflix etc. Why should foreign companies get free ride?
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Sarah B
As someone working in IT sector, I see both sides. Digital taxes are needed but sudden termination of trade talks hurts businesses on both sides. Hope they find middle ground soon.
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Karthik V
"51st state" comment shows Trump's arrogance. Reminds me how some countries treat India too. Good that Canada stood its ground. We need more countries to challenge US unilateralism.
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Nisha Z
While I support digital taxes, I hope this doesn't escalate into full trade war. Indian exports could get affected if global trade tensions increase. Our economy is just recovering!

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