Trump to halt trade talks with Canada over digital tax on U.S. tech companies

President Donald Trump announced that the United States is terminating all trade discussions with Canada in response to a new Canadian tax targeting American technology firms.

“We have just been informed that 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,” Trump said in a post on social media on Friday. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.”

Trump said his administration would announce within the next seven days what tariffs Canada will face for doing business with the United States.

The digital services tax, set to take effect on Monday and originally proposed in Canada’s 2021 federal budget, imposes a 3% levy on revenues over $20 million from digital companies—both domestic and foreign—that generate income from Canadian content and users, according to CTV News.

According to CNBC, the tax will impact U.S.-based firms including Amazon, Google, and Meta.

Trump has long criticized Canada’s trade practices, particularly tariffs on American dairy exports. In his post, he referenced tariffs as high as 400% on U.S. dairy products, calling the digital tax the latest in a series of unfair policies.