Trump terminates trade talks with Canada over tax on tech firms
US President Donald Trump said on Friday that he's immediately suspending trade talks with Canada over its plans to continue with its tax on technology firms, which he called "a direct and blatant attack on our country."
Trump, in a post on his social media network Truth Social, said that the Canadians had just informed the US that it was sticking to its plan to impose the tax which is set to take effect Monday.
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump posted.
"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."
The digital services tax applies to Canadian and foreign businesses that engage with online users in Canada.
It will apply to companies like Amazon, Google, Meta, Uber and Airbnb with a 3% levy on revenue from Canadian users.
It will apply retroactively, leaving US companies with a $2 billion (€1.7 billion) bill due at the end of the month.
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