日本語
한국어
Tiếng Việt
简体中文
In a surprising move, former President Donald Trump has announced the immediate termination of all trade discussions with Canada. The decision, revealed via a post on Truth Social, stems from Ottawa’s implementation of a digital services tax targeting U.S. tech companies.
Trump accused Canada of mirroring the European Union’s approach with what he described as an “egregious” tax. He further stated that the U.S. would soon inform Canada of the tariffs it would face for conducting business with the United States.
The full statement from Trump’s Truth Social post reads:
“We have just been informed that Canada, a very difficult Country to TRADE with, including the fact that they have charged our Farmers as much as 400% Tariffs, for years, on Dairy Products, 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. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately. We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period. Thank you for your attention to this matter!”
As of now, there has been no immediate response from the office of Canadian Prime Minister Mark Carney regarding the situation.
This abrupt halt in negotiations casts a shadow over the U.S.’s trade relationship with Canada, a long-standing and crucial economic partner. Last year, the U.S. goods trade with Canada amounted to approximately $762 billion, according to data from the U.S. Trade Representative.
Following Trump’s announcement, both the S&P 500 and the Nasdaq Composite experienced a downturn, pulling back from previous record highs.
Canada’s digital services tax, enacted the previous year with retroactive application to 2022, is scheduled to begin collecting payments this week. The tax impacts both domestic and foreign tech companies, including major U.S. players like Amazon, Google, and Meta. Canadian officials had previously stated their intention to proceed with the tax despite strong objections from the United States.
The situation remains fluid, and the potential economic repercussions of this trade dispute are significant. Stay tuned for further updates as this story develops.