US President Donald Trump has announced the immediate suspension of all trade talks with Canada, saying he plans to impose high import taxes on Canadian goods.
This action was in response to Canada’s finance department confirming plans to collect a 3-percent digital services tax on revenue from Canadian users of large digital platforms, retroactive to 2022.
The new Canadian tax could cost American technology companies up to $2 billion in retroactive payments, which Trump described as a direct attack on the US.
The president also issued warnings to the European Union regarding similar digital taxes, saying that the US holds significant economic leverage in these international trade discussions.
The announcement led to market instability and highlights ongoing trade tensions between the US and Canada, one of its largest trading partners.