U.S. President Donald Trump declared an immediate end to trade negotiations with Canada on Friday, citing Ottawa’s newly imposed digital services tax targeting American tech firms. The move escalates tensions between the two neighbors as a critical July 9 deadline for U.S. trade deals looms.
In a social media post, Trump accused Canada of launching a “direct and blatant attack” on the U.S. by taxing companies like Google and Amazon. “Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” he wrote. The U.S. plans to notify Canada of retaliatory tariffs within seven days.
Analysts suggest Canada’s tax mirrors similar measures by the European Union, reflecting global efforts to regulate tech giants. The abrupt halt in talks complicates Washington’s race to finalize trade agreements with multiple partners ahead of its self-imposed deadline. White House Press Secretary Karoline Leavitt previously hinted Trump might extend the timeline, but Friday’s announcement signals a hardening stance.
The decision could disrupt supply chains and raise costs for businesses reliant on cross-border trade, particularly in automotive and agriculture sectors. For investors, the stalemate underscores growing uncertainties in North American markets.
(Cover: Canadian Prime Minister Mark Carney and U.S. President Donald Trump at the 2025 G7 Summit in Alberta, Canada. /VCG)
