Trump says he’s ending ‘all discussions on trade with Canada’ effective immediately
U.S. President Donald Trump has made a bold announcement, declaring an end to all trade discussions with Canada effective immediately. In a social media post on Friday, Trump stated, “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.” This decision comes as a significant blow to the ongoing negotiations between the two countries aimed at resolving the trade dispute and lifting the punishing tariffs imposed by Trump on Canadian goods.
The trade tensions between Canada and the U.S. have already caused major economic dislocations, job losses, and a decline in southbound exports. At the recent G7 summit, Trump and Prime Minister Mark Carney had agreed to work towards a resolution within 30 days. However, Trump’s latest move to terminate the discussions stems from Canada’s plan to implement a digital services tax (DST), which would require tech giants like Amazon, Google, Meta, Uber, and Airbnb to pay a special tax.
Carney, speaking briefly to reporters after the announcement, expressed his disappointment at the decision and emphasized that Canada would continue to negotiate in the best interest of Canadians. The DST, set to take effect on June 30, has been a contentious issue between the two countries for years. The tax is expected to generate billions of dollars in revenue by imposing a three percent levy on revenue from Canadian users of U.S. tech companies.
While Canada and other OECD countries had been discussing a global DST, the Trudeau government decided to move forward with its own tax independently. This unilateral action has drawn criticism from the U.S., with Trump accusing Canada of launching a direct attack on American technology companies. The president’s decision to end trade talks has been met with surprise by Canadian officials, who had expressed optimism about the progress of negotiations just hours before Trump’s announcement.
Despite the setback, Canada remains committed to finding a resolution to the trade dispute and will continue to engage in discussions with the U.S. Trade Minister Dominic LeBlanc emphasized the importance of maintaining a constructive relationship with American counterparts while striving to secure the best economic deal for Canadians.
The sudden halt in trade discussions between the U.S. and Canada has raised concerns about the future of bilateral trade relations. As both countries navigate the complexities of international trade, finding common ground on issues like the DST will be crucial to fostering a mutually beneficial partnership.
