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President Donald Trump today announced that he is immediately “terminating ALL discussions on Trade with Canada” in direct response to Ottawa’s plan to implement a 3 percent Digital Services Tax (DST) on U.S. technology firms. Trump denounced the levy as an “egregious… direct and blatant attack on our country,” and branded Canada as a “very difficult country to trade with.” He warned that new tariffs on Canadian goods would be announced within seven days, citing America’s leverage over its northern neighbor.

Canada Responds Firmly, Talks May Continue

Canada’s government maintained that negotiations would persist despite the setback. Prime Minister Mark Carney affirmed that talks would continue “in the best interests of Canadian workers and businesses,” while Finance Minister François‑Philippe Champagne reiterated Ottawa’s commitment to the digital tax . The DST, retroactive to 2022, is expected to affect major U.S. tech companies like Google and Meta, potentially costing them billions—estimates range from US $2 billion to $3 billion . U.S. officials, including Treasury Secretary Scott Bessent, have indicated that a Section 301 investigation may be launched in response to Canada’s move .