US President Donald Trump has announced the immediate termination of all trade talks with Canada, ending months-long negotiations between the two countries following Canada’s announcement of a new digital services tax (DST).
The DST targets large foreign and domestic digital companies, including major US tech firms such as Meta, Apple, Google, Amazon, and Microsoft.
Set to take effect retroactively from 2022, starting on Monday, the DST imposes a 3% tax on large digital companies' revenues from online advertising, social media, online marketplaces, and user data licensing in Canada.
Trump posted on his social media platform Truth Social that due to this digital services tax, the US will end all trade discussions with Canada effective immediately and plans to inform Canada within the next week about the tariff rates Canada will be required to pay for conducting business with the US.
He accused Canada of copying the European Union, which has implemented a similar tax, and described it as “a direct and blatant attack on our country.”
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump wrote in a post on Truth Social.
“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.”
Canadian Prime Minister Mark Carney’s office did not immediately comment on Trump’s remarks.