Trump halts Canada trade talks over digital tax on US tech giants, tariffs to be announced within a week
WASHINGTON, June 28 — President Donald Trump said yesterday he is calling off trade negotiations with Canada in retaliation for taxes impacting US tech firms, adding that Ottawa will learn of their new tariff rate within a week.
Trump was referring to Canada's digital services tax, which was enacted last year and forecast to bring in CA$5.9 billion (RM17.76 billion) over five years.
While the measure is not new, US service providers will be 'on the hook for a multi-billion dollar payment in Canada' come June 30, noted the Computer & Communications Industry Association recently.
The three percent tax applies to large or multinational companies such as Alphabet, Amazon and Meta that provide digital services to Canadians, and Washington has previously requested dispute settlement talks over the matter.
'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump said in a post on his Truth Social platform Friday.
Canada may have been spared some of Trump's sweeping duties, but it faces a separate tariff regime.
Trump has also imposed steep levies on imports of steel, aluminium and autos.
Last week, Canadian Prime Minister Mark Carney said Ottawa will adjust its 25 percent counter tariffs on US steel and aluminium — in response to a doubling of US levies on the metals to 50 percent — if a bilateral trade deal was not reached in 30 days.
'We will continue to conduct these complex negotiations in the best interest of Canadians,' Carney said Friday, adding that he had not spoken to Trump on the day.
US Treasury Secretary Scott Bessent told CNBC that Washington had hoped Carney's government would halt the tax 'as a sign of goodwill.'
He now expects US Trade Representative Jamieson Greer to start a probe to determine the harm stemming from Canada's digital tax.
China progress
Trump's salvo targeting Canada came shortly after Washington and Beijing confirmed finalising a framework to move forward on trade.
A priority for Washington in talks with Beijing had been ensuring the supply of the rare earths essential for products including electric vehicles, hard drives and national defence equipment.
China, which dominates global production of the elements, began requiring export licences in early April, a move widely viewed as a response to Trump's blistering tariffs.
Both sides agreed after talks in Geneva in May to temporarily lower steep tit-for-tat duties on each other's products.
China also committed to easing some non-tariff countermeasures but US officials later accused Beijing of violating the pact and slow-walking export licence approvals for rare earths.
They eventually agreed on a framework to move forward with their Geneva consensus, following talks in London this month.
A White House official told AFP on Thursday that the Trump administration and China had 'agreed to an additional understanding for a framework to implement the Geneva agreement.'
This clarification came after the US president told an event that Washington had inked a deal relating to trade with China, without providing details.
Under the deal, China 'will review and approve applications for the export control items that meet the requirements in accordance with the law,' China's commerce ministry said.
'The US side will correspondingly cancel a series of restrictive measures against China,' it added.
Upcoming deals?
Dozens of economies, although not China, face a July 9 deadline for steeper duties to kick in — rising from a current 10 percent.
It remains to be seen if countries will successfully reach agreements to avoid them before the deadline.
On talks with the European Union, for example, Trump told an event at the White House on Friday: 'We have the cards. We have the cards far more than they do.'
But Bessent said Washington could wrap up its agenda for trade deals by September, indicating more agreements could be concluded, although talks were likely to extend past July.
Bessent told Fox Business there are 18 key partners Washington is focused on pacts with.
'If we can ink 10 or 12 of the important 18, there are another important 20 relationships, then I think we could have trade wrapped up by Labor Day,' Bessent said, referring to the US holiday on September 1.
Wall Street's major indexes finished at fresh records as markets cheered progress in US-China trade while shrugging off concerns about Canada. — AFP
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The Star
3 hours ago
- The Star
Trump wins as Supreme Court curbs judges, but may yet lose on birthright citizenship
WASHINGTON (Reuters) -The U.S. Supreme Court's landmark ruling blunting a potent weapon that federal judges have used to block government policies nationwide during legal challenges was in many ways a victory for President Donald Trump, except perhaps on the very policy he is seeking to enforce. An executive order that the Republican president signed on his first day back in office in January would restrict birthright citizenship - a far-reaching plan that three federal judges, questioning its constitutionality, quickly halted nationwide through so-called "universal" injunctions. But the Supreme Court's ruling on Friday, while announcing a dramatic shift in how judges have operated for years deploying such relief, left enough room for the challengers to Trump's directive to try to prevent it from taking effect while litigation over its legality plays out. "I do not expect the president's executive order on birthright citizenship will ever go into effect," said Samuel Bray, a Notre Dame Law School professor and a prominent critic of universal injunctions whose work the court's majority cited extensively in Friday's ruling. Trump's executive order directs federal agencies to refuse to recognize the citizenship of children born in the United States who do not have at least one parent who is an American citizen or lawful permanent resident, also called a "green card" holder. The three judges found that the order likely violates citizenship language in the U.S. Constitution's 14th Amendment. The directive remains blocked while lower courts reconsider the scope of their injunctions, and the Supreme Court said it cannot take effect for 30 days, a window that gives the challengers time to seek further protection from those courts. The court's six conservative justices delivered the majority ruling, granting Trump's request to narrow the injunctions issued by the judges in Maryland, Washington and Massachusetts. Its three liberal members dissented. The ruling by Justice Amy Coney Barrett, who Trump appointed to the court in 2020, emphasized the need to hem in the power of judges, warning against an "imperial" judiciary. Judges can provide "complete relief" only to the plaintiffs before them, Barrett wrote. A HOST OF POLICIES That outcome was a major victory for Trump and his allies, who have repeatedly denounced judges who have impeded his agenda. It could make it easier for the administration to implement his policies, including to accelerate deportations of migrants, restrict transgender rights, curtail diversity and inclusion efforts, and downsize the federal government - many of which have tested the limits of executive power. In the birthright citizenship dispute, the ruling left open the potential for individual plaintiffs to seek relief beyond themselves through class action lawsuits targeting a policy that would upend the long-held understanding that the Constitution confers citizenship on virtually anyone born on U.S. soil. Bray said he expects a surge of new class action cases, resulting in "class-protective" injunctions. "Given that the birthright-citizenship executive order is unconstitutional, I expect courts will grant those preliminary injunctions, and they will be affirmed on appeal," Bray said. Some of the challengers have already taken that path. Plaintiffs in the Maryland case, including expectant mothers and immigrant advocacy groups, asked the presiding judge who had issued a universal injunction to treat the case as a class action to protect all children who would be ineligible for birthright citizenship if the executive order takes effect. "I think in terms of the scope of the relief that we'll ultimately get, there is no difference," said William Powell, one of the lawyers for the Maryland plaintiffs. "We're going to be able to get protection through the class action for everyone in the country whose baby could potentially be covered by the executive order, assuming we succeed." The ruling also sidestepped a key question over whether states that bring lawsuits might need an injunction that applies beyond their borders to address their alleged harms, directing lower courts to answer it first. STATES CHALLENGE DIRECTIVE The challenge to Trump's directive also included 22 states, most of them Democratic-governed, who argued that the financial and administrative burdens they would face required a nationwide block on Trump's order. George Mason University constitutional law expert Ilya Somin said the practical consequences of the ruling will depend on various issues not decided so far by the Supreme Court. "As the majority recognizes, states may be entitled to much broader relief than individuals or private groups," Somin said. New Jersey Attorney General Matthew Platkin, a Democrat who helped lead the case brought in Massachusetts, disagreed with the ruling but sketched out a path forward on Friday. The ruling, Platkin said in a statement, "recognized that nationwide orders can be appropriate to protect the plaintiffs themselves from harm - which is true, and has always been true, in our case." Platkin committed to "keep challenging President Trump's flagrantly unlawful order, which strips American babies of citizenship for the first time since the Civil War" of 1861-1865. Legal experts said they expect a lot of legal maneuvering in lower courts in the weeks ahead, and the challengers still face an uphill battle. Compared to injunctions in individual cases, class actions are often harder to successfully mount. States, too, still do not know whether they have the requisite legal entitlement to sue. Trump's administration said they do not, but the court left that debate unresolved. Meanwhile, the 30-day clock is ticking. If the challengers are unsuccessful going forward, Trump's order could apply in some parts of the country, but not others. "The ruling is set to go into effect 30 days from now and leaves families in states across the country in deep uncertainty about whether their children will be born as U.S. citizens," said Elora Mukherjee, director of Columbia Law School's immigrants' rights clinic. (Reporting by Andrew Chung; Additional reporting by John Kruzel, Nate Raymond, Jan Wolfe and Trevor Hunnicutt; Editing by Will Dunham)
Malay Mail
6 hours ago
- Malay Mail
Can Xi, Trump, Khamenei, and Anwar get along? Yes — If the world rediscovers strategic civility — Phar Kim Beng
JUNE 28 — In a world marked by sanctions, suspicion, and soundbites, the idea that Xi Jinping, Donald Trump, Ayatollah Khamenei, and Anwar Ibrahim could ever get along may seem far-fetched. But it is not impossible. The world has long misunderstood the difference between ideological differences and strategic necessity. In an era of multipolar competition and post-normal crises, the ability to disagree without destabilizing the global order is no longer a luxury—it is a prerequisite. The answer to whether these four leaders can find common ground is 'yes'—but only if the world learns to value strategic civility over ideological conformity. And only if we recognize the role of strategic convenor powers—like Malaysia under Anwar Ibrahim—in brokering spaces where dialogue, not dogma, prevails. Four leaders, four civilizational trajectories Xi Jinping leads a China determined to reclaim its historical stature through the revival of Confucian governance principles, Party supremacy, and economic statecraft. China's global posture is one of confidence—sometimes defiant, but often methodical. Donald Trump, back in office, rules through disruption. His foreign policy may seem erratic, but there is a pattern: transactionalism, spectacle, and a preference for leverage over long-term entanglements. While he loathes multilateralism, he is not instinctively drawn to war either. He wants deals—big, visible, and beneficial to domestic constituencies. Ayatollah Khamenei, presiding over a beleaguered but resilient Islamic Republic, blends revolutionary theology with geopolitical pragmatism. Despite decades of sanctions and confrontation, Tehran has always kept a channel open for diplomacy—when treated with dignity. And Anwar Ibrahim—a Muslim democrat, intellectual, and reformer—brings moral clarity without moral posturing. He is not just the Prime Minister of Malaysia; he is Asean's most articulate proponent of civilizational dialogue, advocating for coexistence between Islam, the West, and the Confucian East. His track record shows a consistent commitment to rule-based order, justice, and multilateralism anchored in ethics. When strategic interests overlap, so can leaders What connects these four leaders is not their personal affinity but their converging interests. All four, for different reasons, now operate in a world where overreach brings blowback, and where the line between strategic deterrence and economic disaster grows thinner by the day. Trump wants trade wins and less global policing. He remains open to deals that avoid new wars, especially if they burnish his legacy and strengthen U.S. industry. Xi seeks global stability to ensure China's continued rise. Tensions with the U.S. must be managed, not escalated. A rare earth agreement with Washington was recently signed—proof that economic logic can prevail over decoupling rhetoric. Khamenei, behind the veil of defiance, sees value in a stable regional order. Iran's pivot eastward, especially toward China and Asean, reflects a desire to diversify diplomacy and find breathing room from Western isolation. Anwar, more than any other, recognizes that leadership today means navigating contradictions, not escaping them. Under his stewardship, Malaysia is stepping up as a strategic convenor power—offering a rare neutral space for diplomacy between conflicting blocs. The post-normal world needs convenors, not commanders In this post-normal world—characterized by chaos, contradiction, and complexity—what is urgently missing is not hard power, but bridging power. Countries that can bring opposing sides together without being seen as biased are crucial. This is where Malaysia's role as a strategic convenor power becomes indispensable. Malaysia does not lecture. It listens. It does not impose. It hosts. Its voice resonates across the Islamic world, the Global South, and East Asia—not because it is large, but because it is trusted. The Asean Regional Forum, the East Asia Summit, and now growing Asean-GCC-China trilateral dialogues all reflect Malaysia's convening capacity. Anwar's proposal to address global problems through neutral ASEAN mediation, or to build a global moral coalition against Islamophobia and Sinophobia, are not fringe ideas—they are blueprints for how strategic convenors should behave in the 21st century. Lessons from Asean's quiet success The Asean model, for all its imperfections, thrives on strategic civility—a concept the West often mistakes for weakness. ASEAN has shown how ten countries with vastly different systems can pursue consensus, non-interference, and cooperative security without military blocs or coercion. This 'Asean way,' when applied globally, indeed, turned into Asean Will, could moderate the extremes of U.S. unilateralism, Chinese assertiveness, and Iranian resistance. But for that to happen, countries like Malaysia must be given the diplomatic space to facilitate, not just participate. Ayatollah Khamenei, presiding over a beleaguered but resilient Islamic Republic, blends revolutionary theology with geopolitical pragmatism. — AFP pic Toward a new diplomatic quadrilateral Can Xi, Trump, Khamenei, and Anwar sit at the same table—perhaps not literally, but diplomatically? If the terms are mutual respect, economic stability, and non-imposition of political systems, the answer is yes. China wants a stable periphery and global markets. The U.S. wants reduced costs and visible wins. Iran wants security guarantees and economic inclusion. Asean—led by Malaysia—wants a world where small states are not trampled by the rivalry of giants. It is not only possible, but necessary, for this emerging diplomatic quadrilateral to form. Conclusion: Replacing clash with convening The time of zero-sum diplomacy is over. No single power—American, Chinese, or Islamic—can impose its version of order without backlash. What the world needs are strategic convenor powers that can host the moral imagination of all civilizations, offering an architecture of dialogue when architecture of dominance is crumbling. Anwar, by not siding with any ideological camp, but standing for values rooted in justice and dignity, is uniquely placed to midwife this new order. Yes, Xi, Trump, Khamenei, and Anwar can get along—if the rest of us choose convening over coercion, civility over confrontation, and realism rooted in respect. * Phar Kim Beng is Professor of Asean Studies at the International Islamic University Malaysia and a former Head Teaching Fellow at Harvard University. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
The Sun
6 hours ago
- The Sun
Trump wins Supreme Court ruling but birthright citizenship fight continues
WASHINGTON: The U.S. Supreme Court's landmark ruling blunting a potent weapon that federal judges have used to block government policies nationwide during legal challenges was in many ways a victory for President Donald Trump, except perhaps on the very policy he is seeking to enforce. An executive order that the Republican president signed on his first day back in office in January would restrict birthright citizenship - a far-reaching plan that three federal judges, questioning its constitutionality, quickly halted nationwide through so-called 'universal' injunctions. But the Supreme Court's ruling on Friday, while announcing a dramatic shift in how judges have operated for years deploying such relief, left enough room for the challengers to Trump's directive to try to prevent it from taking effect while litigation over its legality plays out. 'I do not expect the president's executive order on birthright citizenship will ever go into effect,' said Samuel Bray, a Notre Dame Law School professor and a prominent critic of universal injunctions whose work the court's majority cited extensively in Friday's ruling. Trump's executive order directs federal agencies to refuse to recognize the citizenship of children born in the United States who do not have at least one parent who is an American citizen or lawful permanent resident, also called a 'green card' holder. The three judges found that the order likely violates citizenship language in the U.S. Constitution's 14th Amendment. The directive remains blocked while lower courts reconsider the scope of their injunctions, and the Supreme Court said it cannot take effect for 30 days, a window that gives the challengers time to seek further protection from those courts. The court's six conservative justices delivered the majority ruling, granting Trump's request to narrow the injunctions issued by the judges in Maryland, Washington and Massachusetts. Its three liberal members dissented. The ruling by Justice Amy Coney Barrett, who Trump appointed to the court in 2020, emphasized the need to hem in the power of judges, warning against an 'imperial' judiciary. Judges can provide 'complete relief' only to the plaintiffs before them, Barrett wrote. A HOST OF POLICIES That outcome was a major victory for Trump and his allies, who have repeatedly denounced judges who have impeded his agenda. It could make it easier for the administration to implement his policies, including to accelerate deportations of migrants, restrict transgender rights, curtail diversity and inclusion efforts, and downsize the federal government - many of which have tested the limits of executive power. In the birthright citizenship dispute, the ruling left open the potential for individual plaintiffs to seek relief beyond themselves through class action lawsuits targeting a policy that would upend the long-held understanding that the Constitution confers citizenship on virtually anyone born on U.S. soil. Bray said he expects a surge of new class action cases, resulting in 'class-protective' injunctions. 'Given that the birthright-citizenship executive order is unconstitutional, I expect courts will grant those preliminary injunctions, and they will be affirmed on appeal,' Bray said. Some of the challengers have already taken that path. Plaintiffs in the Maryland case, including expectant mothers and immigrant advocacy groups, asked the presiding judge who had issued a universal injunction to treat the case as a class action to protect all children who would be ineligible for birthright citizenship if the executive order takes effect. 'I think in terms of the scope of the relief that we'll ultimately get, there is no difference,' said William Powell, one of the lawyers for the Maryland plaintiffs. 'We're going to be able to get protection through the class action for everyone in the country whose baby could potentially be covered by the executive order, assuming we succeed.' The ruling also sidestepped a key question over whether states that bring lawsuits might need an injunction that applies beyond their borders to address their alleged harms, directing lower courts to answer it first. STATES CHALLENGE DIRECTIVE The challenge to Trump's directive also included 22 states, most of them Democratic-governed, who argued that the financial and administrative burdens they would face required a nationwide block on Trump's order. George Mason University constitutional law expert Ilya Somin said the practical consequences of the ruling will depend on various issues not decided so far by the Supreme Court. 'As the majority recognizes, states may be entitled to much broader relief than individuals or private groups,' Somin said. New Jersey Attorney General Matthew Platkin, a Democrat who helped lead the case brought in Massachusetts, disagreed with the ruling but sketched out a path forward on Friday. The ruling, Platkin said in a statement, 'recognized that nationwide orders can be appropriate to protect the plaintiffs themselves from harm - which is true, and has always been true, in our case.' Platkin committed to 'keep challenging President Trump's flagrantly unlawful order, which strips American babies of citizenship for the first time since the Civil War' of 1861-1865. Legal experts said they expect a lot of legal maneuvering in lower courts in the weeks ahead, and the challengers still face an uphill battle. Compared to injunctions in individual cases, class actions are often harder to successfully mount. States, too, still do not know whether they have the requisite legal entitlement to sue. Trump's administration said they do not, but the court left that debate unresolved. Meanwhile, the 30-day clock is ticking. If the challengers are unsuccessful going forward, Trump's order could apply in some parts of the country, but not others. 'The ruling is set to go into effect 30 days from now and leaves families in states across the country in deep uncertainty about whether their children will be born as U.S. citizens,' said Elora Mukherjee, director of Columbia Law School's immigrants' rights clinic.
