Trump says he is ending Canada trade talks amid tech tax dispute
Donald Trump has announced he is ending trade talks with Canada, one of its largest trading partners, accusing it of imposing unfair taxes on US technology companies in a 'direct and blatant attack on our country'.
The news came hours after the US had announced a breakthrough in talks with China over rare-earth shipments into America, and announcements from top officials that the US would continue trade negotiations beyond a 9 July deadline set by Trump.
Signs of a cooling in the trade war sent US stock markets to new highs.
The US has been negotiating a trade deal with Canada, one of its top two global trading partners, for months. Mark Carney, Canada's prime minister, met Trump at the G7 summit of world leaders in Alberta earlier this month.
Carney announced that Trump had agreed to 'pursue negotiations toward a deal within the coming 30 days'.
But talks appear to have foundered over Canada's decision to impose a digital services tax on US technology companies. First payments on the tax are due on Monday.
Trump wrote on Truth Social: '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!'
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