President Donald Trump announced Friday that he is immediately ending trade negotiations with Canada in retaliation for its plan to press ahead with a digital services tax targeting major technology companies.
In a post on his social media platform, Trump called the tax “a direct and blatant attack on our country.”
According to the president, Canadian officials informed Washington this week that they would not back down from implementing the measure, which is set to take effect Monday.
The digital services tax applies a 3% levy on revenue generated from Canadian users by both Canadian and foreign companies. The policy will impact U.S. tech giants such as Amazon, Google, Meta, Uber and Airbnb and is retroactive, leaving American firms facing an estimated $2 billion bill payable by the end of the month.
“Canada has made it clear they intend to continue this unfair tax,” Trump wrote. “Accordingly, I am terminating all trade discussions with them immediately.”
The decision halts months of negotiations aimed at easing steep tariffs Trump imposed on Canadian goods. The talks had been viewed as a possible first step toward normalizing economic relations between the two countries.
Canada first approved the digital services tax in June 2024, arguing it was necessary to ensure that large technology platforms pay their fair share in the markets where they profit.
