U.S. President Donald Trump speaks during a meeting with Canadian Prime Minister Mark Carney at the G7 summit in Kananaskis, Alberta, Canada, June 16, 2025.
Kevin Lamarque | Reuters
President Donald Trump on Friday said the United States is immediately “terminating ALL discussions on Trade with Canada” in response to Ottawa’s decision to impose a digital services tax on American tech firms.
Trump’s announcement on Truth Social accused Canada of “copying the European Union” with the “egregious” tax.
“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 added.
Read Trump’s full post:
“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. They are obviously copying the European Union, which has done the same thing, and is currently under discussion with us, also. Based on this egregious Tax, we are hereby 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. Thank you for your attention to this matter!”
The office of Canadian Prime Minister Mark Carney did not immediately respond to CNBC’s request for comment.
The president’s angry declaration suddenly imperils America’s trade relationship with a close ally that has long been one of its top two global trading partners.
U.S. goods trade with Canada totaled roughly $762 billion last year, according to the office of the U.S. trade representative.
The first payments from Canada’s digital services tax, which was enacted last year and applies retroactively to 2022, are set to be collected Monday. The tax would hit both domestic and foreign tech companies, including U.S. giants such as Amazon, Google and Meta.
Canadian officials said this month that they will not put the tax on pause, despite opposition from the U.S.
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