Canada Holds Firm as Trump Ends Trade Negotiations
(MENAFN) Canadian Prime Minister Mark Carney on Friday described ongoing trade talks with the United States as "complex," following U.S. President Donald Trump's decision to end all negotiations over the imposition of potential new tariffs. In response to Trump's announcement, Carney reaffirmed Canada's commitment to advancing the talks.
"We'll continue to conduct these complex negotiations in the best interest of Canadians," Carney told local media. "It's a negotiation."
Trump's declaration to halt all trade discussions came in direct response to Canada’s proposed digital services tax, which targets U.S. tech giants. "Canada's digital services tax on American technology companies is a direct and blatant attack on the United States," Trump said in a social media post.
The tax, set to take effect on June 30, would impose a 3% levy on the revenue of major U.S. companies like Amazon, Google, Meta, Uber, and Airbnb derived from Canadian users.
The announcement further escalates the ongoing tensions between the two nations, which have been engaged in lengthy negotiations aimed at resolving trade disputes, particularly concerning tariffs on Canadian goods. These tariffs have already had a significant economic impact, with Statistics Canada reporting a 0.1% decline in real GDP for April. The drop was largely driven by a contraction in the transportation equipment manufacturing sector, where lower exports of passenger vehicles and light trucks coincided with production cuts from motor vehicle manufacturers, who are grappling with uncertainty over U.S. tariffs.
As these high-stakes discussions continue, the economic fallout from tariff disputes and trade uncertainties remains a pressing concern for both nations.
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