Former U.S. President Donald Trump has announced the immediate suspension of all trade discussions with Canada, reacting sharply to a new tax plan by the Canadian government that targets digital service providers, including major U.S. tech companies.
In a statement posted on his social media platform, Truth Social, Trump accused Canada of launching a “direct and open attack” on the United States through what he described as a “disgusting” tax.
“Based on this disgusting tax, we are cutting off ALL trade discussions with Canada, effective immediately,” Trump wrote.
“We will notify Canada of the tariff they will have to pay to do business with the United States within the next seven days.”
Trump also labeled Canada as “a very difficult country to trade with,” signaling a hardline stance that could escalate economic tensions between the two traditionally close allies.
This move comes amid Canada’s push to implement a Digital Services Tax (DST), a policy that has drawn criticism from U.S. officials and tech giants, who claim it disproportionately targets American companies like Google, Amazon, Meta, and Apple.
If carried out, Trump’s threatened retaliation could have significant implications for North American trade relations, especially under the USMCA (United States-Mexico-Canada Agreement) framework, which had been renegotiated during Trump’s first term.
