“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
President Donald Trump on Friday announced the immediate termination of trade talks with Canada over its plan to implement a digital services tax on major tech companies.
Speaking on Truth Social, Trump said, “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.” He added, “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 described the tax as “a direct and blatant attack on our country.”
Canada’s proposed 3% levy targets revenue earned from Canadian users by both domestic and foreign firms, including Amazon, Google, Meta, Uber, and Airbnb.
Set to take effect Monday, the tax will be retroactive, resulting in an estimated $2 billion (€1.7 billion) bill for U.S. companies by the end of the month.
The move escalates tensions in U.S.–Canada trade relations.