Trump cuts off trade talks with Canada over digital tax
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week.
The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm.
It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations.
The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy.
US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq.
Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others.
The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022.
Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with".
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said.
"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."
Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data.
Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days.
"The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement.
Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets.
The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.
"So we have countries approaching us with very good deals," Bessent said on Fox Business Network.
"We have 18 important trading partners. ... 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.
He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals.
But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates.
"I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke.
Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.
China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus.
It said China will approve export applications of controlled items in accordance with the law.
It did not mention rare earths.
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week.
The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm.
It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations.
The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy.
US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq.
Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others.
The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022.
Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with".
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said.
"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."
Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data.
Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days.
"The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement.
Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets.
The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.
"So we have countries approaching us with very good deals," Bessent said on Fox Business Network.
"We have 18 important trading partners. ... 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.
He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals.
But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates.
"I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke.
Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.
China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus.
It said China will approve export applications of controlled items in accordance with the law.
It did not mention rare earths.
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week.
The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm.
It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations.
The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy.
US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq.
Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others.
The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022.
Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with".
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said.
"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."
Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data.
Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days.
"The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement.
Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets.
The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.
"So we have countries approaching us with very good deals," Bessent said on Fox Business Network.
"We have 18 important trading partners. ... 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.
He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals.
But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates.
"I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke.
Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.
China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus.
It said China will approve export applications of controlled items in accordance with the law.
It did not mention rare earths.
US President Donald Trump has abruptly cut off trade talks with Canada over its tax targeting US technology firms, calling it a "blatant attack" and saying that he would set a new tariff rate on Canadian goods within the next week.
The move plunges US relations with its second-largest trading partner back into chaos after a period of relative calm.
It also came just hours after Treasury Secretary Scott Bessent struck an upbeat tone on trade, touting progress had been made with China on reviving the flow of critical minerals for the US manufacturing sector and in other key tariff negotiations.
The often-chaotic rollout of Trump's import levies since his return to office this year have frequently whipsawed financial markets, and have begun to weigh on consumer spending, the bedrock of the US economy.
US stocks were briefly batted lower by his broadside against Canada but managed to close out the week at record highs for the S&P 500 and Nasdaq.
Trump's action comes ahead of Canada's plans to begin collecting on Monday a longstanding digital services tax on US technology firms including Amazon, Meta, Alphabet's Google and Apple among others.
The tax is 3.0 per cent of the digital services revenue a firm takes in from Canadian users above $US20 million ($A31 million) in a calendar year, and payments will be retroactive to 2022.
Trump, in a post on his Truth Social media platform, called the tax "a direct and blatant attack on our country" and said Canada was a "very difficult country to TRADE with".
"Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately," Trump said.
"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."
Canada is the second-largest US trading partner after Mexico, buying $US349.4 billion of US goods last year and exporting $US412.7 billion to the US, according to US Census Bureau data.
Canadian Prime Minister Mark Carney had said on June 16 he and Trump agreed to try to wrap up a new economic and security deal within 30 days.
"The Canadian government will continue to engage in these complex negotiations with the United States in the best interests of Canadian workers and businesses," Carney's office said in a statement.
Earlier on Friday, Bessent said the Trump administration's various trade deals with other countries could be done by the September 1 Labor Day holiday, citing talks with 18 top trade partners and another revision to a deal with China to reopen the flow of rare earth minerals and magnets.
The United States sent a new proposal to the European Union on Thursday and India sent a delegation to Washington DC for more talks.
"So we have countries approaching us with very good deals," Bessent said on Fox Business Network.
"We have 18 important trading partners. ... 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.
He did not mention any changes to a July 9 deadline for countries to reach deals with the United States or see tariffs spike higher but has previously said that countries negotiating in good faith could get deals.
But Trump told reporters at the White House that he could extend the tariff deadline or "make it shorter," adding that within the next week and a half, he would notify countries of their tariff rates.
"I'd like to just send letters out to everybody: Congratulations. You're paying 25 per cent" tariffs, Trump said in an apparent joke.
Bessent said the United States and China had resolved issues surrounding shipments of Chinese rare earth minerals and magnets to the US, further modifying a deal reached in May in Geneva.
China's commerce ministry said on Friday the two countries have confirmed details on the framework of implementing the Geneva trade talks consensus.
It said China will approve export applications of controlled items in accordance with the law.
It did not mention rare earths.
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The decision did not, however, permit immediate implementation of Trump's directive, instead instructing lower courts to reconsider the scope of the injunctions. The ruling was authored by Justice Amy Coney Barrett, one of three conservative justices who Trump appointed during his first term in office from 2017 to 2021. Trump has scored a series of victories at the Supreme Court since returning to office in January. These have included clearing the way for his administration to resume deporting migrants to countries other than their own without offering them a chance to show the harms they could face and ending temporary legal status held by hundreds of thousands of migrants on humanitarian grounds. The court also permitted implementation of Trump's ban on transgender people in the military, let his administration withhold payment to foreign aid groups for work already performed for the government, allowed his firing of two Democratic members of federal labour boards to stand for now, and backed his Department of Government Efficiency in two disputes. "President Trump secured the relief he sought in most of his administration's cases," George Mason University law school professor Robert Luther III said. "Justice Barrett's opinion is a win for the presidency," Luther said of the decision on nationwide injunctions. "It recognises that the executive branch is a bully pulpit with a wide range of authorities to implement the promises of a campaign platform." Once again, as with many of the term's major decisions, the three liberal justices found themselves in dissent, a familiar position as the court under the guidance of Chief Justice John Roberts continues to shift American law rightward. The rulings in favour of Trump illustrate that "the court's three most liberal justices are proving less relevant now than at any earlier point in the Roberts court with respect to their impact on its jurisprudence", Luther said. The cases involving Trump administration policies came to the court as emergency filings rather than through the normal process, with oral arguments held only in the birthright litigation. And those arguments did not focus on the legality of Trump's action but rather on the actions of the judges who found it was likely unconstitutional. "One theme is the court's struggle to keep pace with a faster-moving legal world, especially as the Trump administration tests the outer boundaries of its powers," Boston College Law School professor Daniel Lyons said. In other cases during the nine-month term, the court sided with a Republican-backed ban in Tennessee on gender-affirming medical care for transgender minors, endorsed South Carolina's plan to cut off public funding to reproductive health care and abortion provider Planned Parenthood, and made it easier to pursue claims alleging workplace "reverse" discrimination. The court also spared two American gun companies from the Mexican government's lawsuit accusing them of aiding illegal firearms trafficking to drug cartels, and allowed parents to opt elementary school children out of classes when storybooks with LGBTQI characters are read. In several cases involving federal statutes, the message from the justices is that people unhappy with the outcome need to take that up with Congress, according to Loyola Law School professor Jessica Levinson. "The court is implicitly saying, 'That's Congress's problem to fix, and it's not the court's role to solve those issues'," Levinson said. This is the second straight year that the court ended its term with a decision handing Trump a major victory. On July 1, 2024, it ruled in favour of Trump in deciding that presidents cannot be prosecuted for official actions taken in office. It marked the first time the court recognised any form of presidential immunity from prosecution. The Supreme Court's next term begins in October but Trump's administration still has some emergency requests pending that the justices could act upon at any time. It has asked the court to halt a judicial order blocking mass federal job cuts and the restructuring of agencies. It also has asked the justices to rein in the judge handling a case involving deportations to so-called "third countries". Recent rulings "have really shown the court for what it is, which is a deeply conservative court", Georgia State University law professor Anthony Michael Kreis said. The court's jurisprudence reflected a larger shift in the national discourse, with Republicans feeling they had the political capital to achieve long-sought aims, Kreis said. The court's conservative majority, Kreis said, "is probably feeling more emboldened to act". The US Supreme Court on the last day of rulings for its term gave Donald Trump his latest in a series of victories at the nation's top judicial body, one that might make it easier for him to implement contentious elements of his sweeping agenda as he tests the limits of presidential power. With its six conservative members in the majority and its three liberals dissenting, the court on Friday curbed the ability of judges to impede his policies nationwide, resetting the power balance between the federal judiciary and presidents. The ruling came after the Republican president's administration asked the Supreme Court to narrow the scope of so-called "universal" injunctions issued by three federal judges that halted nationally the enforcement of his January executive order limiting birthright citizenship. The court's decision has "systematically weakened judicial oversight and strengthened executive discretion", said Paul Rosenzweig, a lawyer who served in Republican President George W Bush's administration. Friday's ruling said that judges generally could grant relief only to the individuals or groups who brought a particular lawsuit. The decision did not, however, permit immediate implementation of Trump's directive, instead instructing lower courts to reconsider the scope of the injunctions. The ruling was authored by Justice Amy Coney Barrett, one of three conservative justices who Trump appointed during his first term in office from 2017 to 2021. Trump has scored a series of victories at the Supreme Court since returning to office in January. These have included clearing the way for his administration to resume deporting migrants to countries other than their own without offering them a chance to show the harms they could face and ending temporary legal status held by hundreds of thousands of migrants on humanitarian grounds. The court also permitted implementation of Trump's ban on transgender people in the military, let his administration withhold payment to foreign aid groups for work already performed for the government, allowed his firing of two Democratic members of federal labour boards to stand for now, and backed his Department of Government Efficiency in two disputes. "President Trump secured the relief he sought in most of his administration's cases," George Mason University law school professor Robert Luther III said. "Justice Barrett's opinion is a win for the presidency," Luther said of the decision on nationwide injunctions. "It recognises that the executive branch is a bully pulpit with a wide range of authorities to implement the promises of a campaign platform." Once again, as with many of the term's major decisions, the three liberal justices found themselves in dissent, a familiar position as the court under the guidance of Chief Justice John Roberts continues to shift American law rightward. The rulings in favour of Trump illustrate that "the court's three most liberal justices are proving less relevant now than at any earlier point in the Roberts court with respect to their impact on its jurisprudence", Luther said. The cases involving Trump administration policies came to the court as emergency filings rather than through the normal process, with oral arguments held only in the birthright litigation. And those arguments did not focus on the legality of Trump's action but rather on the actions of the judges who found it was likely unconstitutional. "One theme is the court's struggle to keep pace with a faster-moving legal world, especially as the Trump administration tests the outer boundaries of its powers," Boston College Law School professor Daniel Lyons said. In other cases during the nine-month term, the court sided with a Republican-backed ban in Tennessee on gender-affirming medical care for transgender minors, endorsed South Carolina's plan to cut off public funding to reproductive health care and abortion provider Planned Parenthood, and made it easier to pursue claims alleging workplace "reverse" discrimination. The court also spared two American gun companies from the Mexican government's lawsuit accusing them of aiding illegal firearms trafficking to drug cartels, and allowed parents to opt elementary school children out of classes when storybooks with LGBTQI characters are read. In several cases involving federal statutes, the message from the justices is that people unhappy with the outcome need to take that up with Congress, according to Loyola Law School professor Jessica Levinson. "The court is implicitly saying, 'That's Congress's problem to fix, and it's not the court's role to solve those issues'," Levinson said. This is the second straight year that the court ended its term with a decision handing Trump a major victory. On July 1, 2024, it ruled in favour of Trump in deciding that presidents cannot be prosecuted for official actions taken in office. It marked the first time the court recognised any form of presidential immunity from prosecution. The Supreme Court's next term begins in October but Trump's administration still has some emergency requests pending that the justices could act upon at any time. It has asked the court to halt a judicial order blocking mass federal job cuts and the restructuring of agencies. It also has asked the justices to rein in the judge handling a case involving deportations to so-called "third countries". Recent rulings "have really shown the court for what it is, which is a deeply conservative court", Georgia State University law professor Anthony Michael Kreis said. The court's jurisprudence reflected a larger shift in the national discourse, with Republicans feeling they had the political capital to achieve long-sought aims, Kreis said. The court's conservative majority, Kreis said, "is probably feeling more emboldened to act".
West Australian
2 hours ago
- West Australian
Trump victorious again as US Supreme Court closes term
The US Supreme Court on the last day of rulings for its term gave Donald Trump his latest in a series of victories at the nation's top judicial body, one that might make it easier for him to implement contentious elements of his sweeping agenda as he tests the limits of presidential power. With its six conservative members in the majority and its three liberals dissenting, the court on Friday curbed the ability of judges to impede his policies nationwide, resetting the power balance between the federal judiciary and presidents. The ruling came after the Republican president's administration asked the Supreme Court to narrow the scope of so-called "universal" injunctions issued by three federal judges that halted nationally the enforcement of his January executive order limiting birthright citizenship. The court's decision has "systematically weakened judicial oversight and strengthened executive discretion", said Paul Rosenzweig, a lawyer who served in Republican President George W Bush's administration. Friday's ruling said that judges generally could grant relief only to the individuals or groups who brought a particular lawsuit. The decision did not, however, permit immediate implementation of Trump's directive, instead instructing lower courts to reconsider the scope of the injunctions. The ruling was authored by Justice Amy Coney Barrett, one of three conservative justices who Trump appointed during his first term in office from 2017 to 2021. Trump has scored a series of victories at the Supreme Court since returning to office in January. These have included clearing the way for his administration to resume deporting migrants to countries other than their own without offering them a chance to show the harms they could face and ending temporary legal status held by hundreds of thousands of migrants on humanitarian grounds. The court also permitted implementation of Trump's ban on transgender people in the military, let his administration withhold payment to foreign aid groups for work already performed for the government, allowed his firing of two Democratic members of federal labour boards to stand for now, and backed his Department of Government Efficiency in two disputes. "President Trump secured the relief he sought in most of his administration's cases," George Mason University law school professor Robert Luther III said. "Justice Barrett's opinion is a win for the presidency," Luther said of the decision on nationwide injunctions. "It recognises that the executive branch is a bully pulpit with a wide range of authorities to implement the promises of a campaign platform." Once again, as with many of the term's major decisions, the three liberal justices found themselves in dissent, a familiar position as the court under the guidance of Chief Justice John Roberts continues to shift American law rightward. The rulings in favour of Trump illustrate that "the court's three most liberal justices are proving less relevant now than at any earlier point in the Roberts court with respect to their impact on its jurisprudence", Luther said. The cases involving Trump administration policies came to the court as emergency filings rather than through the normal process, with oral arguments held only in the birthright litigation. And those arguments did not focus on the legality of Trump's action but rather on the actions of the judges who found it was likely unconstitutional. "One theme is the court's struggle to keep pace with a faster-moving legal world, especially as the Trump administration tests the outer boundaries of its powers," Boston College Law School professor Daniel Lyons said. In other cases during the nine-month term, the court sided with a Republican-backed ban in Tennessee on gender-affirming medical care for transgender minors, endorsed South Carolina's plan to cut off public funding to reproductive health care and abortion provider Planned Parenthood, and made it easier to pursue claims alleging workplace "reverse" discrimination. The court also spared two American gun companies from the Mexican government's lawsuit accusing them of aiding illegal firearms trafficking to drug cartels, and allowed parents to opt elementary school children out of classes when storybooks with LGBTQI characters are read. In several cases involving federal statutes, the message from the justices is that people unhappy with the outcome need to take that up with Congress, according to Loyola Law School professor Jessica Levinson. "The court is implicitly saying, 'That's Congress's problem to fix, and it's not the court's role to solve those issues'," Levinson said. This is the second straight year that the court ended its term with a decision handing Trump a major victory. On July 1, 2024, it ruled in favour of Trump in deciding that presidents cannot be prosecuted for official actions taken in office. It marked the first time the court recognised any form of presidential immunity from prosecution. The Supreme Court's next term begins in October but Trump's administration still has some emergency requests pending that the justices could act upon at any time. It has asked the court to halt a judicial order blocking mass federal job cuts and the restructuring of agencies. It also has asked the justices to rein in the judge handling a case involving deportations to so-called "third countries". Recent rulings "have really shown the court for what it is, which is a deeply conservative court", Georgia State University law professor Anthony Michael Kreis said. The court's jurisprudence reflected a larger shift in the national discourse, with Republicans feeling they had the political capital to achieve long-sought aims, Kreis said. The court's conservative majority, Kreis said, "is probably feeling more emboldened to act".
