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US ending all trade talks with Canada over new tax on US tech firms

  • By Al Mayadeen English
  • Source: Agencies
  • 27 Jun 2025 22:45
2 Min Read

President Trump announced an immediate halt to all U.S.-Canada trade talks in retaliation for Ottawa’s new digital tax on American tech firms.

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  • US ending all trade talks with Canada over new tax on US tech firms
    US President Donald Trump speaks to the media on June 27, 2025 in the briefing room of the White House in Washington (AP)

President Donald Trump announced Friday that the United States is immediately halting all trade negotiations with Canada in response to Ottawa’s decision to impose a new tax on American tech companies.

In a post on Truth Social, Trump wrote, “We have just been informed that Canada… has just announced that they are putting a Digital Services Tax on our American Technology Companies, which is a direct and blatant attack on our Country."

Citing the tax as “egregious,” Trump declared an end to all trade discussions with Canada and added that his administration will announce new tariffs on Canadian exports within the next seven days.

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Last month, Canadian Prime Minister Mark Carney met with US President Donald Trump and delivered a firm message, asserting that Canada is not for sale.

Carney and Trump discussed a wide range of topics, including Canada’s sovereignty, defense, trade, and tariffs, keeping the conversation focused and diplomatic while deliberately avoiding any signs of tension or conflict.

Carney’s position stood in clear contrast to Trump’s repeated claims about wanting to annex Canada and turn it into the 51st state, though both leaders maintained a friendly tone throughout their meeting, especially when Carney, with a calm but firm delivery, told Trump that some places are never for sale.

“Never say never, never say never,” Trump responded.

Despite Carney’s request to lift tariffs on Canadian goods, President Trump flatly refused, repeating his stance that Canada had nothing the US wanted, while Carney, undeterred by the rejection, pointed to the upcoming update of the Canada-United States-Mexico Agreement as a potential foundation for broader negotiations moving forward.

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  • US President Donald Trump
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  • Washington
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  • trade war
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