Trump terminates trade talks with Canada
President Donald Trump said on Friday that he had dismissed business discussions with Canada, citing an incoming Canadian tax on technological companies, including those based in the United States.
In an article on Truth Social, Trump described Canada as “a very difficult country with whom to exchange” and said that its levy on technological companies – the first payment is due Monday – “is a direct and flagrant attack against our country”.
“Based on this blatant tax, we finish all discussions on trade with Canada, with immediate effect,” he said. “We will get to know the price in Canada that they will pay to do business with the United States of America in the next seven days.”
Canada is the second American trading partner. Currently, the United States has a price rate of 25% applied to non-USMCA products imported from Canada. This excludes energy products, to which Trump applied a price rate of 10%. It also supports a large part of the tax on 50% of Trump on imports of steel and aluminum – it is the largest foreign supplier of these materials in the United States
The office of Canadian Prime Minister Mark Carney did not immediately respond to a request for comments.
Last week, Canada’s Minister of Finance said he would not delay the implementation of a digital services tax while US trade discussions continue. Any company that makes more than $ 15 million on Canadian Internet users is subject to a 3% tax on this income.
A lobbying group for some technology giants said the tax, which is retroactive at 2022, would cost US companies up to $ 3 billion. These payments should start on June 30.
