Trump ends trade talks with Canada
By The New Obs with AFP
Published on
Canadian Prime Minister Mark Carney with Donald Trump at the G7 summit in Alberta, Canada, June 16, 2025. SUZANNE PLUNKETT/AP/SIPA
Last year, Canada introduced a digital services tax that targets American digital giants such as Google, Apple, Meta (Facebook), Amazon, and Microsoft.
US President Donald Trump announced on Friday, June 27, that he was ending trade negotiations with his Canadian neighbor, deeming Ottawa's tax targeting digital giants a "direct and obvious blow" to the United States.
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"Because of this outrageous tax, we are ending ALL trade talks with Canada, effective immediately," Trump wrote on his Truth Social platform. "We will notify Canada within seven days of the tariffs they will have to pay to do business with the United States of America," Trump added.
Last year, Canada implemented a digital services tax that targets American digital giants such as Google, Apple, Meta (Facebook), Amazon, and Microsoft. They are accused of exploiting the intangible nature of their businesses to avoid paying taxes.
New customs dutiesOttawa is set to begin collecting this digital services tax (DST) on June 30. It targets tech giants with annual global revenues exceeding CAD$1.1 billion and annual revenues in Canada exceeding CAD$20 million.
The American president also criticizes the European Union (EU) for having implemented such a tax, and uses it as a lever for negotiation in trade discussions with the European bloc.
The threat of new tariffs on Canadian products imported into the United States comes as Canada has been subject to a special regime since Donald Trump's return to power in January.
It is hit by some of the new tariffs, but some of its exports are still somewhat protected by its free trade agreement (CUSMA or USMCA in English) with the United States and Mexico.
According to the governments implementing them, taxes on digital services are temporary, pending the outcome of international negotiations on the taxation of multinationals.
By The New Obs with AFP
