Trump halts trade talks with Canada over tech tax on US firms

Donald Trump has suspended US-Canada trade talks over Ottawa’s 3% digital services tax on tech firms like Amazon and Google. The levy, retroactive and set to begin Monday, could cost U.S. companies $2 billion. New tariffs may follow

Washington: US President Donald Trump announced the immediate suspension of trade talks with Canada over its decision to proceed with a Digital Services Tax (DST) on technology companies. He described the move as “a direct and blatant attack on our country.”

In a post on his social media platform on Friday, Trump said Canada had formally notified the US of its intention to implement the tax starting Monday.

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“Based on this egregious tax, we are hereby terminating ALL discussions on trade with Canada, effective immediately. We will let Canada know the tariff they will be paying to do business with the United States of America within the next seven-day period,” Trump wrote.

Canada’s 3 per cent DST will apply to large tech companies such as Amazon, Google, Meta, Uber, and Airbnb, based on revenue generated from Canadian users. The tax will be retroactive, creating a projected $2 billion bill for US companies, due at the end of the month.

The two countries had previously been in talks to resolve Trump-era tariffs on Canadian goods. However, the announcement appears to reverse that course.

Trump also told reporters earlier that the US would soon send formal letters to various countries, notifying them of new tariff rates his administration plans to impose.