President Trump Terminates Trade Talks with Canada over Digital Services Tax

Washington, The Gulf Observer: U.S. President Donald Trump announced on Friday the termination of all ongoing trade discussions with Canada, citing the country’s newly imposed digital services tax targeting American technology companies. The move marks a significant escalation in trade tensions between the two allies.

In a statement posted on his Truth Social platform, President Trump described Canada’s tax policy as “a direct and blatant attack on our country,” accusing Ottawa of emulating the European Union’s regulatory approach toward American tech firms.

“Canada is obviously copying the European Union, which has done the same thing,” Trump stated, calling Canada “a very difficult country to TRADE with.”

The President also criticized Canada’s long-standing tariffs on U.S. dairy products, claiming that some duties have historically reached as high as 400 percent, further aggravating bilateral trade relations.

As a retaliatory measure, President Trump announced that his administration will introduce new tariffs on Canadian imports. “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 wrote.

Canada’s digital services tax, aimed at large multinational tech corporations, has drawn criticism from U.S. officials and industry leaders, who argue that it unfairly targets American businesses and undermines global efforts to develop a coordinated approach to digital taxation.

The White House has yet to issue an official policy directive, but the President’s remarks signal a hardline stance that may significantly affect trade flows between the two North American economies.