Trump says we are ending all commercial talks with Canada on digital services tax

president Donald Trump He said on Friday that the United States ends all labor discussions with Canada.

Trump cited Canada’s digital services tax on American technology companies as a reason to end commercial conversations.

“It is clear that they are copying the European Union, which did the same, and is currently discussing with us. Based on this terrible tax, we end all discussions about trade with Canada, immediately effective,” Trump wrote in a post on the social truth.

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Trump said that the administration will reach Canada during the “next seven -day period” why The tariff will pay To work with the United States

The president added in his position that Canada is a “very difficult country in trading” and claimed that Canada imposed a tariff of up to 400 % on American dairy products.

After Trump’s announcement, the US dollar gained 0.7 % against the Canadian dollar.

The stocks have reduced their previous gains on the news. the S&P 500 Standard Standard It has reached the highest level ever after it rose 0.59 % early in the afternoon, although he drowned in the president’s declaration to achieve a gain of about 0.21 % as the market approaches this weekend.

The digital services tax in Canada entered into force in June 2024 and requires large companies, whether it is based in Canada or anywhere else, to pay a 3 % tax on revenues gained from participating with users online in Canada if they face certain conditions.

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The tax -related payments are scheduled to be collected on Monday, and the revenue tax apply from online market services, online ads, social media services, and some user data sales.

the Canadian government and Trump administration He clashed on the customs tariff after the president slapped a series of drawings on Canadian goods after returning to the White House earlier this year, prompting Canada to take revenge on the customs tariff about American exports.

Many of these definitions are still valid as the two sides seek to settle on a new commercial framework. The United States and Mexico-Canada Convention (USMCA), which Trump negotiated during his first term, is being re-negotiated by next year-although the two governments sought to conclude negotiations earlier.

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Canadian Prime Minister Mark Carney and President Trump previously set a deadline on July 21, 2025, to reach an agreement on a new trade agreement between the two countries – which is participating in a large amount of bilateral trade.

The United States is the largest commercial partner in Canada, while Canada is the largest importer of American exports and one of the three best sources of American imports.