President Donald Trump announced Friday that the United States is terminating all trade discussions with Canada after learning of the country’s plan to impose a digital services tax targeting American technology companies.
In a post on Truth Social, Trump accused Canada of launching “a direct and blatant attack” on the U.S. economy, comparing the move to similar actions by the European Union. He also criticized Canada’s long-standing tariffs on U.S. dairy, calling the country “very difficult to trade with.”
Trump said the U.S. would announce retaliatory tariffs on Canadian goods within a week, warning that Canada would face consequences for targeting American firms.
Canada has not yet responded publicly to the statement. The digital services tax in question would place new levies on revenues earned by foreign tech giants operating in Canadian digital markets.
The trade freeze raises tensions between two of North America’s largest economic partners.
