Trump doesn’t want to negotiate with Canada on tariffs
(MENAFN) U.S. President Donald Trump announced a complete halt to all trade negotiations with Canada in response to Ottawa’s newly implemented tax on digital services, which he described as “a direct and blatant attack on our country.”
Tensions between the two nations have been escalating since Trump imposed 25% tariffs on Canadian goods shortly after taking office in February, prompting Canada to retaliate with its own tariffs. Although Trump later suspended those tariffs temporarily to allow for individual trade negotiations, the strained relationship has continued.
Trump has frequently accused Canada of exploiting the United States economically and has even suggested that Canada should become the 51st U.S. state, arguing that the U.S. effectively subsidizes its neighbor’s economy.
On Friday, Trump posted on Truth Social, “Canada, a very difficult Country to TRADE with… has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country.”
He went on to declare, “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” adding that the U.S. government would soon notify Canada of the tariffs it will impose for doing business with the United States.
Canadian Prime Minister Mark Carney responded later that day, stating that Canada would “continue to conduct these complex negotiations in the best interests of Canadians,” but noted he had not yet spoken directly with Trump about the situation.
Canada’s digital services tax, which took effect in June 2024, imposes a 3% levy on profits for companies earning more than CAD 20 million ($14.5 million) from digital services in Canada. The tax applies retroactively to January 1, 2022, and payments are due starting Monday. Major U.S. technology firms such as Amazon, Apple, Airbnb, Google, Meta, and Uber are expected to collectively pay around $2 billion by the end of July, according to Canadian media reports.
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