U.S. President Donald Trump has made a total stoppage to trade talks with Canada following its newly proposed digital services tax on American technology companies.
"Canada has just announced that they are imposing a digital services tax on American tech companies, which is a direct and blatant attack on the United States," Trump posted on social media.
"Because of this outrageous Tax, we are now going to terminate all discussions with Canada about Trade, effective immediately," he said.
Trump also stated that the U.S. will inform Canada within a week regarding the particular tariffs that will now be imposed on Canadian firms.
Canada is mimicking the European Union by adding the digital services tax, which the U.S. vehemently opposes, Trump said.
According to Xinhua, the United States is now in a hurry to conclude trade negotiations with several partners before the impending self-imposed July 9 deadline. Yet White House Press Secretary Karoline Leavitt said on Thursday that Trump can renew this deadline if he needs it.
This new escalation comes after a May 2025 meeting between Canadian Prime Minister Mark Carney and President Trump at the White House. Even though Carney had characterized the discussions as "wide-ranging and constructive," there were still disagreements, especially concerning tariff policies and Trump's inflammatory statements about Canada being the "51st state."
"It's not productive to keep repeating the 51st state thing," Carney said to reporters, during a CBC News live feed. "He is aware that we are conducting a negotiation between states with sovereignty," he said, observing that Trump has a reputation for speaking freely.
Read also| Report: U.S. Strikes on Iran Left Nuclear Sites Intact
