Trump 'terminating all discussions' on trade with Canada over digital tax

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U.S. President Donald Trump says he’s “terminating” all trade talks with Canada after it was announced that a Digital Services Tax will be levied at the end of June.

Taking to Truth Social, Trump said Canada – which he noted was a “very difficult Country to TRADE with” – will be implementing a Digital Services Tax that he called a “direct and blatant attack” on the United States.

“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,” said Trump. “They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also.”

Because of the tax, Trump declared he will be “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,” he said. “Thank you for your attention to this matter!”

The Digital Sales Tax is a 3% tax applied to digital services that rely on engagement, data and content contributions.