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Trump says US ending trade discussions with Canada over digital tax
The Star
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6/28/2025
US President Donald Trump said on June 27 that the US is immediately ending trade talks with Canada in response to the country's digital services tax on technology companies, calling it a "direct and blatant attack" on the United States.
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00:00
The U.S. administration on Friday said they are immediately putting an end to their trade
00:06
talks with Canada over the digital services tax imposed on American tech companies.
00:12
U.S. President Donald Trump said on his social media post that they will be informing Canada
00:17
of the tariff their neighbor will be paying to do business with America in the next seven days.
00:23
Trump later told reporters during an event related to the Rwanda-Congo peace deal at the White House
00:28
that Canada has been difficult to deal with for the U.S. for years.
00:32
We have a great relationship with the people of Canada, but it's been very difficult.
00:36
And they put a charge in there. We're a little bit early. We found out about it.
00:41
And we have all the cards. We have every single one. We don't want to do anything bad.
00:45
But economically, we have such power over Canada. I'd rather not use it.
00:53
But they did something with our tech companies today trying to copy Europe.
00:57
You know, they copied Europe. It's not going to work out well for Europe either.
01:01
And it's not going to work out well for Canada. They were foolish to do it.
01:05
So I said, we're going to stop all negotiations with Canada right now until they straighten out their act.
01:11
They do most of their businesses with us. And when you have that circumstance, you treat people better.
01:17
They've had farmers that are getting like 300%, 400%, 200% in tariffs. Nobody's ever seen anything like it.
01:26
We have cases. You don't read this and the people don't report.
01:29
But they charge us 400% on some dairy products. 400%. Nobody writes that.
01:38
It's not fair to our farmers. And we've got to protect our farmers.
01:42
Canadian Prime Minister Mark Carney said Canada and the U.S. will continue with their complex negotiations.
01:49
We conduct these complex negotiations in the best interest of Canadians. It's a negotiation.
01:54
The move plunges U.S.-Canada relations back into chaos after a period of relative calm
02:00
that included a cordial G7 meeting in mid-June, where both sides agreed to wrap up a new economic agreement within 30 days.
02:09
Canada is the second-largest trading partner for the U.S.
02:13
It bought US$349.4 billion of American goods last year and exported US$412.7 billion worth of goods to the U.S.
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