The United States is halting trade discussions with Canada after Prime Minister Carney’s government imposed a new digital services tax on U.S. tech companies. President Trump called the move a “blatant attack” and promised swift tariff retaliation within the week.
Key Facts:
- President Trump ended trade talks with Canada due to its new digital services tax targeting American tech companies.
- The announcement was made Friday via a post on Truth Social and followed a White House press briefing.
- Trump cited previous Canadian tariffs on American dairy as further evidence of unfair trade practices.
- He promised to announce new U.S. tariffs on Canadian goods within seven days.
- Canada and the U.S. are each other’s largest trading partners, with significant export/import dependencies.
The Rest of The Story:
President Trump’s move to cancel trade discussions with Canada stems from Ottawa’s decision to implement a digital services tax, aimed at American tech firms operating in Canada.
Calling it “a direct and blatant attack,” Trump compared the action to similar efforts by the European Union and declared all negotiations with Canada over.
Trump said Canada has long been “a very difficult Country to TRADE with,” referencing long-standing disputes such as dairy tariffs that reached up to 400%.
“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,” Trump wrote.
Canada has not issued an official response.
This announcement follows earlier tit-for-tat tariffs earlier in the year when Trump placed new levies on Canadian imports, which Ottawa answered with tariffs of their own.
HOLY CRAP! Trump just CUT OFF Canada from ANY trade negotiations!
Have fun in a recession!
“We are hereby terminating ALL discussions on Trade with Canada, effective immediately.” pic.twitter.com/hGe2vUFsa5
— Gunther Eagleman™ (@GuntherEagleman) June 27, 2025
Commentary:
President Trump is once again making it clear that the U.S. will no longer accept unfair trade terms just to keep global partners happy.
For decades, America has allowed countries like Canada to benefit from U.S. markets while placing restrictive tariffs on American goods.
Trump is saying those days are over.
Canada, though an ally, relies heavily on access to the U.S. market.
America is Canada’s largest trading partner, meaning any serious tariff battle would hit their economy much harder than ours.
From autos to agriculture, Canadian industries have more to lose.
While some may view Trump’s stance as aggressive, it’s actually a calculated strategy.
He’s forcing countries to the table by showing he’s not afraid to walk away from bad deals.
This approach worked with Mexico and is starting to work with China. Canada will likely follow suit.
Critics often accuse Trump of risking trade wars, but what they fail to admit is that these “wars” have long been one-sided—with the U.S. losing.
He’s simply flipping the script. If that means pausing negotiations until Canada adjusts course, so be it.
The digital tax is just another attempt by foreign governments to profit off U.S. innovation without playing by the rules.
Tech companies like Google, Facebook, and Amazon are easy targets for foreign tax grabs.
Trump is drawing a line and defending our industries.
This move sends a clear message to global partners: if you tax American companies unfairly, expect consequences.
The U.S. won’t be bullied or guilted into accepting lopsided trade relationships any longer.
This isn’t isolationism. It’s strength through fairness.
Trump is building leverage to reshape global trade norms.
Allies will have to adapt or fall behind.
The Bottom Line:
President Trump has halted trade talks with Canada in response to its new digital services tax, calling the move unfair and punitive.
He plans to announce retaliatory tariffs within a week.
With so much of Canada’s economy tied to U.S. trade, the pressure is now squarely on Ottawa.
Trump’s message is clear: the U.S. will no longer accept trade terms that put American companies at a disadvantage.
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