Trump suspends trade talks with Canada over 'egregious tax'
U.S. President Donald Trump announced on Friday, June 27, the immediate termination of trade negotiations with Canada due to the country's introduction of a digital tax on the profits of large American technology companies. This was reported by Reuters.
Trump called it a "blatant attack" and threatened to impose new tariffs on Canadian goods within the next week.
"Based on this outrageous tax, we are terminating all trade discussions with Canada, effective immediately," Trump wrote on the Truth Social platform.
Speaking to reporters at the White House, the US President said that talks with Canada would not resume "until they correct their actions".
The new Canadian tax, which takes effect on Monday, June 30, is 3% of digital revenue earned by companies that make more than $20 million in a calendar year from Canadian users.
It will apply, in particular, to Amazon, Google, Meta, and Apple, and will be applied to income earned since 2022.
Despite these statements, US Treasury Secretary Scott Bessent attempted to calm the situation, telling CNBC in an interview that the US Trade Representative is preparing an investigation into Canada's tax (the so-called "Section 301 investigation").
This could provide formal grounds for a customs response in the amount of the damages – approximately $2 billion.
In response to Trump's actions, the office of Canadian Prime Minister Mark Carney stated that Canada "will continue to engage in difficult negotiations in the interests of its workers and businesses."
- On December 3, 2024, Fox News reported that Trump offered Canada the opportunity to become the 51st US state. On May 6, 2025, Canadian Prime Minister Carney, during a meeting with Trump, stated that the country was not for sale, to which Trump advised him not to be so sure.
