US President Donald Trump has ended trade talks with Canada. He made the surprise announcement on social media Friday. Trump said Canada’s new tax on tech firms is “egregious.” He warned of fresh tariffs on Canadian goods within the next seven days.
At the center of the fallout is Canada’s 3% digital services tax. The law targets large tech companies like Amazon, Google, and Apple. The tax could cost US firms over $2 billion each year. First payments are due Monday. Canada insists it’s fair.
Trump disagrees. “We are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he posted online.
Canadian Prime Minister Mark Carney responded with restraint. He said talks would continue in the best interest of Canadians. Carney and Trump last met in May at the White House. Many saw that meeting as hopeful for progress. Now, Trump’s hardline stance casts doubt on any quick deal.
Trump has used this tactic before. Last month, he threatened tariffs on the EU, then stepped back. Analysts believe this is part of his negotiation strategy. “This is his trade playbook,” said Inu Malak of the Council on Foreign Relations. Still, it signals renewed US focus on Canada.
Canada’s Chamber of Commerce called the move “a surprise.” But CEO Candace Laing said progress is still possible. Business groups on both sides want a deal. Tariffs hit supply chains hard. Car parts, for example, cross borders multiple times before final assembly.
Also Read Don’t Let These 5 Credit Score Myths Stop You from Getting a Loan
The US already imposed a 25% tariff earlier this year, citing border drug issues. Canada retaliated with tariffs of its own. Despite tensions, US stocks ended higher. The S&P 500 hit a record, showing markets still hope for resolution.
Trump’s move raised pressure. But it also opened a window. The tariff dispute may yet lead both nations back to the table.
Share
Don’t Let These 5 Credit Score Myths Stop You from Getting a Loan
Saudi Grants 30-Day Grace to Expired Visit Visa Holders
