Trump stops trade talks to the United States and Canada on the tax conflict on major technology

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Donald Trump said the United States “ends” trade talks with Canada in retaliation against the new digital services tax on technology companies, reopening a trade war between countries after months of disposal.

“Canada, which is a very difficult country in circulating … I just announced that it is setting a digital service tax on our American technology companies, a direct attack and beating of our country,” the American president published on the social truth platform.

“Based on this terrible tax, we end all discussions about trade with Canada, immediately,” Trump said, adding that he will put a new tariff for Canadian imports “during the next seven days.”

The declaration restores a commercial war with the northern neighbor of the United States, as it ended a period of friendly relations that followed the election of Mark Carne as the Canadian prime minister.

“At the same time, they will respond as soon as possible,” Carney spokesman said on Friday.

Earlier this month, Finance Minister Francois Philippe Champagne said that the government was “advancing” with the digital services tax, although it is a major irritation to the Trump administration.

This procedure will hit technology groups by imposing 3 percent on the revenues gained by Canadian users, and opposed by the Silicon Valley.

The Canadian dollar fell on this declaration, leaving it by 0.7 percent against the US dollar per day. Trump’s statement also led to the S&P 500 of its highest levels per day, but the blue chip index remained about 0.2 percent.

The tensions were also boiling between the two provinces on the Canadian agricultural policy.

Canada recently recognized legislation on “supply management” measures that protect its dairy industry by setting prices and production quotas. In 2017, during his first presidency, Trump described this system as a “stigma”.

“They accused our farms up to 400 % of the customs tariff, for years, on dairy products,” Trump wrote on his social position on Friday, Trump wrote in his social position on Friday.