Oh, Canada! Trump cuts off all trade talks with US’s northern neighbor citing ‘blatant attack on our country’
Trump suspends trade talks with Canada over digital services tax plan
- US President Donald Trump has announced the immediate suspension of all trade talks with Canada, saying he plans to impose high import taxes on Canadian goods.
- This action was in response to Canada's finance department confirming plans to collect a 3-percent digital services tax on revenue from Canadian users of large digital platforms, retroactive to 2022.
- The new Canadian tax could cost American technology companies up to $2 billion in retroactive payments, which Trump described as a direct attack on the US.
- The president also issued warnings to the European Union regarding similar digital taxes, saying that the US holds significant economic leverage in these international trade discussions.
- The announcement led to market instability and highlights ongoing trade tensions between the US and Canada, one of its largest trading partners.