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.<\/p>\n\n\n\n
\u201cWe have just been informed that Canada, a very difficult Country to TRADE with\u2026 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,\u201d Trump said in a post on social media on Friday. \u201cBased on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately.\u201d<\/p>\n\n\n\n
Trump said his administration would announce within the next seven days what tariffs Canada will face for doing business with the United States.<\/p>\n\n\n\n
The digital services tax, set to take effect on Monday and originally proposed in Canada\u2019s 2021 federal budget, imposes a 3% levy on revenues over $20 million from digital companies\u2014both domestic and foreign\u2014that generate income from Canadian content and users, according to CTV News.<\/p>\n\n\n\n
According to CNBC, the tax will impact U.S.-based firms including Amazon, Google, and Meta.<\/p>\n\n\n\n
Trump has long criticized Canada\u2019s 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.<\/p>\n\n\n\n