Trump Ends US-Canada Trade Talks Over Digital Services Tax

Trump Halts US-Canada Trade Talks

Former U.S. President Donald Trump has announced the immediate cessation of all trade negotiations with Canada.

Digital Services Tax Sparks Action

The decision, communicated via Trump's Truth Social platform, is a direct response to Canada's implementation of a digital services tax on U.S. technology companies. Trump characterized the tax as "egregious," accusing Canada of mirroring the European Union's policies.

Tariffs Looming

Trump indicated that the United States will soon inform Canada of the tariffs it will impose on business transactions between the two countries. This escalation marks a significant challenge to the historically strong trade relationship between the nations.

The office of Canadian Prime Minister Mark Carney has not yet responded to the announcement.

Impact on Trade

The sudden termination of trade talks introduces uncertainty into the economic partnership between the U.S. and Canada. U.S. goods trade with Canada totaled roughly $762 billion the previous year, highlighting the scale of potential disruption.

Trump's full statement also cited concerns over existing trade imbalances, including tariffs on dairy products.