Washington DC (National Times): In a fiery social media post on Friday, U.S. President Donald J. Trump announced the immediate termination of all trade discussions with Canada, accusing the country of imposing a “Digital Services Tax” on American technology firms and unfair tariffs on U.S. farmers.
Taking to his platform Truth Social, President Trump called Canada “a very difficult Country to TRADE with” and alleged that Canadian policies have long targeted American producers, specifically pointing to 400% tariffs on dairy products.
Trump’s remarks came after reports that Canada had introduced a new tax targeting digital services, a move similar to the policy already adopted by the European Union. The U.S. President labeled this decision “a direct and blatant attack on our Country,” and accused Canada of mimicking the EU, which he claimed is also in talks with the U.S. over the same issue.
“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” Trump declared, adding that his administration would inform Canada of the new tariffs it would face to do business with the U.S. within seven days.
Trump’s post quickly gained traction online, amassing thousands of likes and comments. He ended his message with a characteristic warning: “Thank you for your attention to this matter!”
The dispute stems from Canada’s decision to implement a Digital Services Tax (DST), a levy targeting large tech companies, many of which are American, that derive substantial revenue from Canadian users. The measure, according to Canadian officials, is designed to ensure fair taxation in the digital economy.
However, U.S. officials and tech giants have long opposed DSTs, arguing they unfairly target American companies like Google, Meta, and Amazon.
In addition to the digital tax, Trump reignited complaints over long-standing agricultural trade disputes, accusing Canada of overprotecting its dairy industry to the detriment of American farmers.
Trump did not specify what tariff measures would be imposed on Canada, only that they would be communicated within a week. Trade experts warn this could escalate into a broader economic confrontation between two of the world’s largest trading partners.
The Canadian government has not yet responded publicly to Trump’s statement.
The sudden move marks a sharp turn in U.S.-Canada relations and could have significant repercussions for North American trade, especially as the United States-Mexico-Canada Agreement (USMCA), the successor to NAFTA, continues to define commerce across the continent.
