Trump terminates tariff talks with Canada and tells ally it will know its fate within seven days
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President Donald Trump said he’s suspending trade talks with Canada over its plans to continue with its tax on technology firms and added he will let it know its fate on the matter in ‘seven days.
Trump used fighting words in a Truth Social post attacking America’s neighbor to the north, calling the technology tax ‘a direct and blatant attack on our country.’
The Canadian tax is scheduled to go into affect on Monday.
‘Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period,’ Trump said in his post.
President Donald Trump broke off trade talks with Canada
The digital services tax will apply to companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users. It will apply retroactively, leaving U.S. companies with a $2 billion bill due at the end of the month.
Trump has taken issue with digital services taxes throughout trade negotiations with other countries, calling them ‘non-tariff trade barriers.’
Canada and the U.S. have been discussing easing a series of steep tariffs Trump imposed on the country.
The president accused Ottawa of ‘copying the European Union’ with the ‘egregious’ tax.
Dozens of countries face a July 9 deadline for Trump’s higher tariffs to kick back into place, and have been engaged in negotiations with the US.
That group does not include Canada and Mexico.
Trump imposed tariffs on America’s neighbors earlier this year over fentanyl trafficking and migration and talks with them are being handled on a separate track.
The president was in Canada earlier this month for the annual meeting of G7 leaders. He left early, citing the situation with Iran.
Canadian Prime Minister Mark Carney and President Donald Trump at the G7 conference
Treasury Secretary Scott Bessent on Thursday said many countries will pause their digital services taxes on US tech companies in exchange for Congressional Republicans killing a ‘revenge tax’ proposal on foreign investors in Trump’s big, beautiful bill.
It’s not clear what specific countries he meant.
