President Donald Trump on Friday announced the United States is terminating trade talks with Canada in response to Ottawa's plan to impose a digital services tax on American technology companies, calling it a “blatant attack” on the U.S.
“Based on this egregious tax, we are hereby terminating ALL discussions on trade with Canada, effective immediately,” Trump said in a post on Truth Social.
He added that the U.S. would notify Canada of new tariffs “within the next seven-day period.”
Trump said he was informed that Canada’s proposed digital services tax targets American tech giants, accusing Ottawa of mimicking the European Union, which is also in discussions with Washington over similar measures.
“They are obviously copying the European Union, which has done the same thing and is currently under discussion with us, also,” Trump wrote.
The move adds a new hurdle to already stalled trade negotiations between the two countries, which have been locked in a tariff dispute for months despite some recent signs of progress.
