Washington - Saba:
U.S. President Donald Trump announced the immediate termination of all trade discussions with Canada in response to Ottawa's decision to impose a digital services tax targeting American tech companies.
In a post on the social media platform "Truth Social" on Friday, President Trump described Canada's digital services tax as a "direct and brazen attack on the United States."
Trump stated, "Based on this outrageous tax, we are hereby ending all trade discussions with Canada, effective immediately."
He added, "We will inform Canada of the tariffs they will pay to deal with the United States within the next seven days."
The U.S. president further remarked, "We have just been informed that Canada—a country that has been very difficult to trade with, especially as it has imposed tariffs of up to 400% on our dairy farmers for years—has announced it will impose a digital services tax targeting American tech companies. This is a direct and blatant assault on our country."
He continued, "Clearly, they are copying what the European Union did by imposing the same tax, which is now also in discussions with us on this matter."
Canadian Prime Minister Mark Carney had announced last Monday that he and President Trump agreed to work toward a new economic and security agreement between their two countries within 30 days.
The two leaders had met earlier on the sidelines of the G7 Summit in Alberta, where Trump reiterated his insistence on tariffs.
A statement from the Canadian Prime Minister's Office said, "Prime Minister Carney and President Trump exchanged updates on key issues in the negotiations for a new economic and security relationship between Canada and the United States."
Notably, the total value of U.S. goods trade with Canada reached approximately $762 billion in 2024, according to the Office of the U.S. Trade Representative.
Meanwhile, the U.S. president escalated his threat to increase tariffs on certain countries by the July 9 deadline.
Trump’s remarks on Friday are the latest indication that some negotiations with major partners may extend beyond early July. However, the U.S. president is considering higher tariff rates for smaller economies that have not reached agreements with the United States.
During a press conference at the White House, Trump stated, "At some point in the next week and a half, or maybe sooner, we will send a message. We have spoken with many countries, and we will simply inform them of what they must pay to do business with the United States."
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