President Trump announces 'termination of all trade talks with Canada' in response to Canada's proposed digital services tax on US companies

With the deadline for Canada to impose a 'digital services tax' on American IT companies fast approaching, US President Donald Trump has announced that he will end all trade talks with Canada.
Trump says he's terminating trade talks with Canada over tax on tech firms | AP News

Trump ends all US trade talks with Canada over digital services tax
Trump says he's 'terminating' all trade discussions with Canada - POLITICO
https://www.politico.com/news/2025/06/27/trump-canada-trade-talks-00429665
What is Canada's digital tax and why is Trump killing trade talks over it? | Business and Economy News | Al Jazeera
https://www.aljazeera.com/economy/2025/6/28/what-is-canadas-digital-tax-and-why-is-trump-killing-trade-talks-over-it
President Trump described Canada as 'an extremely difficult trading partner that has imposed a 400% tariff on dairy products on American farmers for years,' and made clear the cancellation of the talks, saying, 'Canada has now announced that it will impose a digital services tax on American technology companies. This is a direct and obvious attack on our country. The EU is doing the same thing, and is in discussions with us, but has now copied the EU. In response to this egregious tax, we have decided to immediately terminate all trade discussions with Canada.'
It also said, 'Within the next seven days, we will notify Canada of the tariffs it will pay to trade with the United States.'
President Trump is known to have made belittling remarks about Canada, such as saying that the country should be absorbed into the United States as a state.
He also signed a presidential order imposing an additional 25% tariff on Canadian imports in February 2025.
President Trump signs executive order to impose additional tariffs on China, Canada, and Mexico and end tariff exemptions for low-cost imports, potentially affecting low-cost online shopping apps such as Alibaba, SHEIN, and Temu - GIGAZINE

The Canadian digital services tax that has angered President Trump was enacted in 2024 and is set to be applied retroactively to 2022, two years before the law was enacted, and payments from Google, Amazon, Meta, and others are expected to reach $3 billion (approximately 435 billion yen). The deadline for payment is June 30, 2025, and Canada's Finance Minister Champagne stated on June 19 that 'there will be no suspension of the plan (application of the digital services tax).'
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