Canada bows to US pressure, digital tax to be changed. What does Trump say?

Canadian Prime Minister Mark Carney and U.S. President Donald Trump will resume trade negotiations with the aim of reaching an agreement by July 21, Reuters reported, citing the Canadian Ministry of Finance.

US President Donald Trump said Friday he was immediately cutting off trade talks with Canada because the country had not backed down from plans to impose a digital services tax. He said he would notify Canada of a new tariff on goods from the country within a week.

"We have just been informed that Canada, a country that is very difficult to TRADE with ... has just announced that it is implementing a digital services tax on our American technology companies, which is a direct and blatant attack on our country, " Trump wrote on the social media site Truth Social.

"It is clear that they are copying the European Union, which did the same thing and this is currently being discussed with us. On the basis of this egregious tax, we hereby end ALL discussions on trade with Canada, effective immediately . We will inform Canada of the tariff it will pay to do business with the United States of America within the next seven days," he added.

Trump's announcement came less than an hour after Bloomberg reported that the Canadian Treasury would not abandon plans to begin collecting the Digital Services Tax (DST), which is set to go into effect on June 30.

The Canadian tax, similar to those used by some European countries, including the UK and France, amounts to 3% of revenues from Canadian users of digital platforms . It is estimated to have contributed $2.4 billion to the Canadian treasury.

- Canada is a very difficult partner. I love Canada. Frankly, Canada should be the 51st state because it depends entirely on the United States . We are not dependent on Canada - Donald Trump said on Fox News on Sunday.