U.S. President Donald Trump announced Friday that the United States would terminate all trade talks with Canada due to Canada's digital services tax on U.S. tech companies, Reuters reports.
Canada has just announced that they are putting a digital services tax on American technology companies, which is described by Trump as a direct and blatant attack on the United States in a post on social media.
"Based on this egregious tax, we are hereby terminating all discussions on trade with Canada, effective immediately," said Trump.
The United States would inform Canada of the U.S. tariffs that apply to Canadian businesses within the next seven days, according to Trump.
Canada is copying the European Union in introducing digital services tax, noted Trump.
On the same day, U.S. Treasury Secretary Scott Bessent said he is considering imposing a 2 billion U.S. dollars of retroactive digital taxes on Canada.
