U.S. President Donald Trump announced Friday that the United States would terminate all trade talks with Canada due to Canada’s digital services tax on U.S. 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 of the U.S. tariffs that apply to Canadian businesses within the next seven days, according to Trump.
Trump noted that Canada is following the European Union’s lead in introducing a digital services tax.
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 approaches.
However, White House Press Secretary Karoline Leavitt said Thursday that Trump could extend the deadline.
(Cover: Canadian Prime Minister Mark Carney and U.S. President Donald Trump arrive for a family photo during the G7 Summit at the Kananaskis Country Golf Course in Kananaskis, Alberta, Canada, on June 16, 2025. /VCG)
Trump says U.S. will terminate all trade talks with Canada
