President Donald Trump said Friday he is “terminating” all trade discussions with Canada, effective immediately, citing the country’s Digital Services Tax.
“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 Truth Social post.
He accused the country of copying the European Union, “which has done the same thing, and is currently under discussion with us.”
Based on the Digital Services Tax he wrote, the U.S. was “hereby terminating ALL discussions” on trade with Canada.
He added that he’d announce tariff levels on Canada within the next seven days.
Canadian Prime Minister Mark Carney and Trump had previously agreed to secure a new economic and security deal by July 16, in which Canada was hoping Trump would lift tariffs on the country.
Canada’s Digital Services Tax, which imposes a 3 percent tax on large foreign and domestic digital companies that make over C$20 million in revenue, is expected to come into force on Saturday.
The tax applies to certain Canadian profits that companies make from online advertising, social media, online marketplaces and the sale and licensing of user data.
The prime minister’s office didn’t immediately respond to a request for comment. But earlier this week, a Canadian official told POLITICO two meetings were scheduled with U.S. officials to discuss a deal.
